Nancys Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $31,500 per year. Nancy can buy a used truck for $9,500 that will be adequate for the next 4 years. Operating and maintenance costs are estimated to be $24,000 per year. At the end of 4 years, the used truck will have an estimated salvage value of $4,200. Nancys MARR is 22%/year.

A) What is the annual worth of this investment?

B) What is the decision rule for judging the attractiveness of investments based on annual worth?

C) Should Nancy buy the truck?