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

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Mobility USA is considering replacing its service vans with better-equipped vans that will increase gas mileage. They will save Mobility $1,800 per month 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 36 months with a salvage value of 20% of cost. Assuming all cash flows are received at the end of each year, what is the total cash flow in the third year? $30,168$21,600$13,032$8,568

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