Please put all of the information from the problem for both the used van and the new van in the Table provided:

Pistol Pete's Pizza Palace, LLC

You are the analyst for a Pistol Pete's Pizza Palace, a restaurant that is thinking of expanding their business to include catering for at least the next three years. To take on this project, the restaurant would need to purchase a van to transport food to customer locations. Two options are being explored. Purchasing a new van that is ready to go$,$ or purchasing a used van that would require some customization, which would add to the initial cost.

New Van

Cost of van $$65,000$

Customized Expense $$0$

Used Van

Cost of Van $$48,000$

Customized Expense $10,000$

With respect to these figures, experience suggests that the expected life for the project would be $3-$years, based on IRS rules. The company will depreciate the equipment using the MACRS over the life of the project.

Year $133\%$

Year $245\%$

Year $315\%$

Year $47\%$

Both vans would be sold at the end of the project. The projected salvage value for the new van

would be $$25,000$ at project end, while the used van could be expected to have a value of $$10,500.$ A working capital requirement would arise at the time of the investment but would be released upon the termination of the project. For the old van working capital would increase by $$3,500$ and for the new van, working capital would increase by $$2,000.$

In addition to the cost estimates, expected earnings for the two investments would be as follows:

Annual Expected Earning before taxes

Used Van $$28,000$

New Van $$30,000$

Because this will increase their volume, food costs will also go up$.$ For the used van, they'll spend an additional $$5,000$ per year and for the new van food cost will increase by $$6,000$ per year.