E12.5 The Food Pantry, a not-for-profit entity, is considering purchasing a van for pickups and deliveries. The van costs $11,500 and is expected to have a useful life of four years. As a result of the purchase, costs will be reduced by the following amounts: Year 1 $2,250 Year 2 $3,100 Year 3 $5,000 Year 4 $3,500 Assuming that The Food Pantry uses a hurdle rate of 8%, what is the net present value of the van? Should The Food Pantry buy the van? Why? E12.6 Calculate the annual depreciation tax shield for a seven-year investment of $49,000 assuming uniform depreciation and a 30% tax rate