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A new delivery truck costs 19,228. The new delivery truck will generate income of 5,097 / year for 3 years. The tax rate is zero.

A new delivery truck costs 19,228. The new delivery truck will generate income of 5,097 / year for 3 years. The tax rate is zero. At the end of three years, the truck will be worn out. It will cost you $100 to have it towed to the junk yard. If the required rate of return is 9% APR compounded annually, what is the net present value (NPV) of buying this truck?

According to the result above, should you buy the truck?

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