Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $51,000. The object is to save on horse transporter rentals.

Marsha had been renting a transporter every other week for $216 per week plus $1.80 per mile. Most of the trips are 90 miles in total. Marsha usually gives the driver a $45 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $.61 per mile. Insurance costs for Marsha's transporter are $2,000 per year.

The transporter will probably be worth $31,000 (in real terms) after eight years, when Marsha's horse Nike will be ready to retire. Assume a nominal discount rate of 9% and a forecasted inflation rate of 4%. Marsha's transporter is a personal outlay, not a business or financial investment, so taxes can be ignored.Hint:All numbers given in the questions are in real terms. Assume CF at end of year, for simplicity.

Calculate the NPV of the investment