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An office supply company has purchased a light-duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the companys

An office supply company has purchased a light-duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the companys revenue by $10,000 annually, while the associated operating expenses are expected to be $3,000 per year. The trucks market value is expected to decrease by $2,500 each year it is in service. If the company plans to keep the truck for only two years, what is the present worth (PW) and annual worth (AW) of this investment? The MARR = 18% per year.

  1. $5,652.54 ; $1,987.09
  2. $3,141.32 ; $2,006.41
  3. $2,9086.87 ; $2,95.59
  4. None of the above, the answer is $____________; $ ______________.

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