A profitable company has two options:1) $13,000 truck, salvage value is $3000 at end of 7 years, straight line depreciation, maintenance is $1100/year, daily expenses $35/day, Or 2) $83/day rental. The company has a MARR of 10% and pays an income tax rate of 50%. How many days must the truck be used to justify purchase?

1) What are the values of E for the buy case and then the rent case?

2) What goes in cell F for buy/rent (assume "days" is a master cell reference)?

3)What goes in cell G for buy/rent?

4)What goes in cell H (tax deduction) for buy/rent?

5)What goes in cell I (tax savings)?

6) What value of days used makes the two options equal in NPV when i=10%?

Year	Investment	Expense	Depreciation Gain Loss	Total Deduction	Tax Savings	Net Cash flow	PV
0	E
1		F	G	H	I
2