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For some years, Mel has contracted with several major pizza retailers for home delivery services. He uses a MARR of 1 2 % per year
For some years, Mel has contracted with several major pizza retailers for home delivery services. He uses a MARR of per year in all business dealings. His current van, purchased years ago for $ can be used for more years, with an AOC of $ and an estimated $ tradein value. A betterequipped van will cost $ have an economic life of years, an estimated tradein value of $ an AOC of $ per year, and will generate an estimated $ per year additional revenue. On the basis of these estimates, what market value now for the current van will make the new van equally attractive? Solve by spreadsheet or factors, as requested by your instructor.
On equating the AW values of the current van and the new van, tc calculate the market value now for the current van, the spreadsheet tool that should be used is
The market value now for the current van that will make the new van equally attractive will be $
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