Q: 5
A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to
be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the
company will see an increase in income of $100,000 the first year and 5% more each subsequent
year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years
and no salvage value. Management would like to see a 10% return on any investment. The
company's tax rate is 28%.
All of the following are characteristics of standard normal distribution, except:
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