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Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $ 3 6 , 0 0 0 . The object
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $ The object is to save on horse transporter rentals. Marsha had been renting a transporter every other week for $ per day plus $ per mile. Most of the trips are or miles in total. Marsha usually gives the driver, Joe Laminitis, a $ tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $ per mile. Insurance costs for Marsha's transporter are $ per year. The transporter will probably be worth $in real terms after eight years, when Marsha's horse Spike, will be ready to retire. Assume a nominal discount rate of and a forecasted inflation rate. Marsha's transporter is a personal outlay, not a business or financial investment, so taxes can be ignored. Calculate the NPV of the investment. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. NPV
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $ The object is to save on horse transporter rentals.
Marsha had been renting a transporter every other week for $ per day plus $ per mile. Most of the trips are or miles in total. Marsha usually gives the driver, Joe Laminitis, a $ tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $ per mile. Insurance costs for Marsha's transporter are $ per year.
The transporter will probably be worth $in real terms after eight years, when Marsha's horse Spike, will be ready to retire. Assume a nominal discount rate of and a forecasted inflation rate. Marsha's transporter is a personal outlay, not a business or financial investment, so taxes can be ignored.
Calculate the NPV of the investment.
Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.
NPV
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