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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 $75,000.00 today, minus an electric vehicle tax credit $7,500.00 and the reduced maintenance and fuel cost of $5,000. This brings today's MRC to $62,500.00 for each new electric van. The newer vans are expected to increase future MRP by $12,000.00 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 $30,000.00. This firm is borrowing funds at 6% interest. The table indicates the possible investment for one electric vehicle.\table[[Year,Future Value,Present Value,Discount Factor],[1,,,],[2,,,],[3,,,],[4,,,],[5,,,-],[Total Vt,,,],[Total Vp,,,]]
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