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Mobility USA is considering replacing its service vans with better equipped vans that increase gas mileage. They will save Mobility $1,800 per year per van

Mobility USA is considering replacing its service vans with better equipped vans that increase gas mileage. They will save Mobility $1,800 per year per van in labor costs, gasoline and repairs. The new vans will cost $42,840 each and will be depreciated on straight-line basis over thirty-six months with a salvage value of twenty percent of cost. Mobility will forecast future annual cash flows of

$2,752.

$952.

$848.

$1,800.

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