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A delivery company is looking at converting their fleet of gasoline vans to electric vehicles. The all electric vans cost $ 7 5 , 0
A delivery company is looking at converting their fleet of gasoline vans to electric vehicles. The all electric vans cost $ today, minus an electric vehicle tax credit $ and the reduced maintenance and fuel cost of $ This brings today's MRC to $ for each new electric van. The newer vans are expected to increase future MRP by $ each year and have a productive life for five years. At the end of the fifth year, the firm expects to sell the used vans for a salvage value of $ This firm is borrowing funds at interest. The table indicates the possible investment for one electric vehicle.
tableYearFuture Value,Present Value,Discount FactorTotal Total
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