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Single choiceIntermediatePublished

Question · Residual value

A haulage company plans to sell its trucks at the end of their five-year useful life. Today, a five-year-old truck in the expected condition sells on the second-hand market for about 30,000; disposal costs would be 2,000. A consultant forecasts that, owing to inflation, this truck will sell for 36,000 in five years. What residual value should be used?

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