Robinson Co$.$ is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle

would cost $$62,500$ and generate delivery revenue of $$25,000$ for each of the next $6$ years. If Robinson Co$.$ purchases the velicle it

will take a loan for $$50,000.$ The terms of the loan stipulate that $6\%$ annual interest would be charged and that the loan would be

repaid in $6$ equal end of year payments. At the end of the $6$ years, the vehicle will have a salvage value of $$5,000.$ The tax rate is $40\%.$

Assuming that the vehicle is depreciated using MACRS $(5-$year property class$)$ and that Robinson Co$.$ uses an after$-$tax MARR of $10\%,$

compute the PW and determine whether Robinson Co$.$ should purchase the new business vehicle.

Click here to access the TVM Factor Table calculator.

Click here to access the MACRS$-$GDS Property Classes.

Click here to access the MACRS$-$GDS percentages page.

Click here to access the MACRS$-$GDS percentages for $27\mathrm{.}5-$year residential rental property.

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Carry all interim calculations to $5$ decimal places and then round your final answer to a whole number. The tolerance is $+-10.$

Should Robinson Co$.$ purchase the new delivery vehicle?