A delivery company wants to buy a new more efficient van. The van will cost $30,000 to buy. The new van will replace the existing one and will save the firm $7,500 a year in fuel and maintenance costs for three years. After three years the firm can sell the van for $15,000.

1. A) Using a discount rate of 5% should the firm undertake the project?

2. B) Alternatively, the delivery company can purchase an electric van. This will cost an extra $15,000 but will save an extra $4,500 per year. The electric van can be sold for $20,000 in three years. Should the delivery company buy the electric van instead?