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Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $93,750 and

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Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $93,750 and generate delivery revenue of $25,000 for each of the next 6 years. If Robinson Co. purchases the vehicle, it will take a loan for $75,000. The terms of the loan stipulate that 4% 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 $15,000. The tax rate is 400 Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Robinson Co, uses an after-tax MARR of 111 . compute the PW and determine whether Robinson Co. should purchase the new business vehicle. Clickhere 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. Clickhere to access the MACRS-GDS percentages for 27.5 -year residential rental property. 5 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

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