Cost of car is $85,000

Estimated residual value over 3 years is $40,000

Annual interest rate 3.5%

Down payment is $0

Car is 100% business use;

January 1 decision date;

6% discount rate to compute the present value of future cash flows;

If Donald purchases the auto

Use the 2019 depreciation limits for passenger autos in Rev Proc 2019-26; year 1: $18,100 year 2: 16,100, year 3; 9,700

He will sell it at the end of 3 years for the estimated residual value quoted above;

need to compute a loan amortization table for the interest deduction;

Since we haven't covered this yet, the sale of a business vehicle generates ordinary income/loss.

what is the total net present value of all three years