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Laura wants to buy a delivery truck. The truck costs $ 8 3 , 0 0 0 , and will allow her to increase her

Laura wants to buy a delivery truck. The truck costs $83,000, and will allow her to increase her after tax profits by $26,000 per year for the next 10 years. She will borrow 79% of the cost of the truck for 10 years, at an interest rate of 7%. Lauras unlevered cost of capital is 19% and her tax rate is 35%. The loan includes a $2,000 application fee. What is the NPV of buying the truck on these terms? Please use the APV method.

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