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You are working for a shipping company and consider buying a new truck. The pr...
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You are working for a shipping company and consider buying a new truck. The price of the truck is EUR . Maintenance cost are EUR per year. Annual Fuel cost are estimated to be EUR and the insurance premium for the truck will be EUR per year. The truck is going to be used for the next 5 years. You are unsure about the revenue prospects and have identified two scenarios.
| Scenario | t=1 | t=2 | t=3 | t=4 | t=5 |
|---|---|---|---|---|---|
| Good | |||||
| Bad |
The chance for the good scenario to realize is %. What are the expected cash flows of the truck over the next 5 years?
100%
0%
0%
0%
0%