A new transporter bought costs 30000 USD. The project is to save on transporter rentals. Mrs Jill had been renting a transporter every other week for 220USD per day plus 1,1USD per mile. Most of the trips are 80 or 100 miles in total.Mrs Jill usually gives the driver a 35USD tip. With the new transporter Mrs Jones will only have to pay for diesel fuel and maintenance, at about 0,40USD per mile. Insurance costs for Mrs Jones transporter amount to 1200USD per year. The transporter will probably be worth 10000USD (in inflation-adjusted terms) after eight years, when Mrs Jill horse will be ready to retire.

Is the transporter a positive-NPV investment?

Assume a nominal discount rate of 8% and a 2,5% forecasted inflation rate. Mrs Jill transporter is a personal investment, not a business or financial outlay, so taxes can be ignored.