The haulier Transalpe is testing a fleet of trucks that it will resell as a whole at the end of its useful life. The used market today values at 240,000 a similar fleet that has reached the same end of life after comparable use. Transalpe estimates at 5 % the cumulative effect of general and specific price changes until the resale (given). At that date, the sale will involve 6,000 of dealer commission and 1,000 of legal costs. An equivalent new fleet is worth 950,000. What net disposal cash flow should be used in value in use?
- Current price of a similar fleet at the end of its life
- 240,000
- Cumulative effect of price changes (given)
- 5 %
- Dealer commission
- 6,000
- Legal costs
- 1,000
- Price of an equivalent new fleet
- 950,000