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Sandra's Pet Shop is considering the purchase of a new delivery van. Sandra Smith, owner of the shop, has compiled the following estimates in trying
Sandra's Pet Shop is considering the purchase of a new delivery van. Sandra Smith, owner of the shop, has compiled the following estimates in trying to determine whether the delivery van should be purchased: Sandra's assistant manager is trying to convince Sandra that the van has other benefits that she hasn't considered in the initial estimates. These additional benefits, including the free advertising the store's name painted on the var's doors will provide, are expected to increase net cash flows by $520 each year. Clickhere to view PV tables. (a) Your answer has been saved See score details after the due date Calculate the net present value of the van, based on the initial estimstes, (Enter nesative amounts using either a nesutive som preceding the number esg -45 or parentheses es (45) For calculation purposes, use 5 decimal places as displayd in the factor table provided. Raund answer to o decimal places, es. 5.275.) Your answer has been saved. See score detaits aiter the dive oate. Calculate the net present value of the van, based on the initial estimates. (Enter negative amounts uaing either a negathe slgn preceding the number es. -45 or parenthese es. (45). For calculation purposes, use 5 decimal ploces as displayod in the foctor table provided Round artwer to 0 decimal ploces, e.5.5,275.) Net present value Should the van be purchased? eTextbook and Media (b) Calculate the net present value, incorporating the additional benchts stiggested by the assistant manager. (For caleulation purposes, ise 5 decimal ploces as disployed in the factor table provided. Round answer to 0 decimal places, es .5,275.) Netpresent value Calculate the net present value, incorporating the additional benefits suzgested by the assiotant manxger. (FFor calculotion Net present value Should the van be purchased? Van be purchased. eTextbook and Media Attempts: 0 of 1 used (c) Determine how much the additional benehts would have to be worth in order for the van to be purchased Additional benefits would need to have a totak gresent valuc of at least 5
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