1. A van was purchased 3 years ago for $16,000. Even though the van needs $5,000 in repairs right now, it has a current market value as-is of $4,400. If repaired, the van will last 4 more years and will have a salvage value of $600 at EOY 4. O&M costs are $3,800/yr. A new van with an estimated life of 8 years can be purchased for $20,000. The O&M costs are estimated to be $3,000/yr, and the resale value at EOY 8 is $1,800. A trade in of $4,400 will be allowed on the existing van in unrepaired condition. o Should the van be repaired or should a new van be purchased? i= 10% 1. A van was purchased 3 years ago for $16,000. Even though the van needs $5,000 in repairs right now, it has a current market value as-is of $4,400. If repaired, the van will last 4 more years and will have a salvage value of $600 at EOY 4. O&M costs are $3,800/yr. A new van with an estimated life of 8 years can be purchased for $20,000. The O&M costs are estimated to be $3,000/yr, and the resale value at EOY 8 is $1,800. A trade in of $4,400 will be allowed on the existing van in unrepaired condition. o Should the van be repaired or should a new van be purchased? i= 10%