Nancys Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $32,500 per year. Nancy can buy a used truck for $10,000 that will be adequate for the next 5 years. Operating and maintenance costs are estimated to be $21,500 per year. At the end of 5 years, the used truck will have an estimated salvage value of $4,000. Nancys MARR is 22%/year.

A) What is the present worth of this investment?

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

C)Should Nancy buy the truck?