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Angela's Pet Shop is considering the purchase of a new delivery van. Angela Smith, owner of the shop, has compiled the following estimates in trying

image text in transcribed Angela's Pet Shop is considering the purchase of a new delivery van. Angela Smith, owner of the shop, has compiled the following estimates in trying to determine whether the delivery van should be purchased: Angela's assistant manager is trying to convince Angela that the van has other benefits that she hasn't considered in the initial estimates. These additional benefits, including the free advertising the store's name painted on the van's doors will provide, are expected to increase net cash flows by $500 each year. Click here to view PV tables. (a) Calculate the net present value of the van, based on the initial estimates. (Enter negative amounts using either a negative sign preceding the number e.g. - 45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 5,275.) Net present value $ Should the van be purchased? Van be purchased. Attempts: 0 of 1 used

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