Present Amount of 18% Value of Cash Flows Factor Cash Flows -26400 $ -4100 Item Year(s) Purchase of fleet: Initial payment-cars Now Annual cost of servicing, taxes and 1-3 licensing Repairs - Year 1 1 Repairs - Year 2 2 Repairs - Year 3 3 Resale value of the fleet 3 w -1810 -4875 -7975 132000 GA Present value of cash outflows Lease of cars: Initial deposit Lease payments Return of deposit Now 1-3 3 -30750 -84000 30750 Present value of cash outflows