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7. SCU's has the opportunity to buy an additional van to transport athletes. Currently they rent an additional van when they need it. Assume the

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7. SCU's has the opportunity to buy an additional van to transport athletes. Currently they rent an additional van when they need it. Assume the new van costs $40,000 and will last for 3 years, after which SCU would sell it for $5000. Assume this additional van will save SCU $13,000/yr in van rentals. Further assume that SCU uses an interest rate of 6% to make investment decisions. Should SCU buy the van? Show your work. (7 points)

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