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Mariam, the owner of a flower shop, is considering buying a new van for deliveries. She has estimated that the new van would result in

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Mariam, the owner of a flower shop, is considering buying a new van for deliveries. She has estimated that the new van would result in a savings of 8000$ per year over the old van. The new van would cost 25000? and would have a useful life of eight years, at which time it would be sold for 2500s. Mariam uses a 20 % before-tax MARR, and the van would be depreciated by using MACRS 5 year recovery period. Calculate if Mariam should purchase the van using an after -tax present worth analysis. Mariam uses a 40% income tax rate

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