Jims delivery service currently has an older fleet of delivery vans. When at a car dealership recently Jim sees that he can by ten new vans for $50,000 each, Jim decides to purchase the vans and trade in the old fleet of vans for a price of $125,000. The current fleet is not in the best of condition, however they still have five more years of being operational as long as servicing occurs, although the resale value then will only be $40,000. The new fleet which Jim is considering buying are hybrids, and will require $150,000 of fuel and servicing fees annually. However, the older vans Jim currently owns are expensive and require $350,000 of fuel and servicing fees per year.

1) Discuss the savings for the five year period with a 30% taxation rate, and show the information with appropriate cashflow calculations and formulas.