Problem 6-12 Project NPV Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $46,000. The object is to save on horse transporter rentals. Marsha had been renting a transporter every other week for $211 per day plus $1.55 per mile. Most of the trips are 80 or 100 miles in total. Marsha usually gives Joe Laminitis, the driver, a $45 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.56 per mile. Insurance costs for Marsha's transporter are $1,750 per year. The transporter will probably be worth $26,000 (in real terms) after eight years, when Marsha's horse Spike will be ready to retire. Assume a nominal discount rate of 7% and a 2% forecasted inflation rate. Marsha's transporter is a personal outlay, not a business or financial investment, so taxes can be ignored. Calculate the NPV of the investment. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. NPV $ 38,455 X 1 2 3 4 5 6 7 8 0 ($46,000) $ 10,283.00 $ 10,283.00 $ ($46,000) $ 10,283.00 $ 10,283.00 $ 1.00000000000000 0.95327102803738 0.90872565289545 -46000 9802.485981 9344.425889 38,455.24 10,283.00 $ 10,283.00 $ 10,283.00 $ 10,283.00 $ 10,283.00 $ 10,283.00 $26,000 10,283.00 $ 10,283.00 $ 10,283.00 $ 10,283.00 $ 10.283.00 $ 36,283.00 0.86626183733959 0.82578231223026 0.78719435371483 0.75040957083096 0.71534370303512 0.68191642719236 8907.770473 8491.519517 8094.719539 7716.461617 7355.879298 24741.97373 $ 0 1 year 2 car 3 net annual savings 4 salvage value 5 net ann. Cash flows 6 PV factor 7 PV net cash flows 8 NPV 9 0 1 real dis. Rate . 2 annual savings 3 maintenance 4 net savings 5 8 year worth 6 7 8 9 0 0 1 4.90196078431373% $ 10,283.00 $ 1,310.40 $ 7,222.60 $26,000 year 0 1 2 3 4 5 6 6 7 PVF @ 4.90196% 1.00000000000000 0.95327102803738 0.90872565289545 JO13022022 0.86626183733959 0.82578231223026 0.78719435371483 0.75040957083096 0.71534370303512 0.68191642719236 8