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tag for a new truck would represent a major expenditure. Jane Austen, owner of the garage, has compiled the estimates shown below in trying to

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tag for a new truck would represent a major expenditure. Jane Austen, owner of the garage, has compiled the estimates shown below in trying to determine whether the tow truck should be purchased. Jane's good friend. Rick Ryan, stopped by. He is trying to convince Jane that the tow truck will have other benefits that Jane hasn't even considered. First, he say5, cars that need towing need to be foxed. Thus, when Jane tows them to her focility, her repair revenues Will increase. Second, he notes that the tow truck could have a plow mounted on it, thus saving Jane the cost of plowing herparking lot. (Rick will give her a used plow blade for free if Jane will plow Ricks driveway) Third, he notes that the truck will generate goodwill; people who are rescued by Jane's tow truck will feel grateful and might be more inclined to use her service station in the future or buy gas there. Fourth, the tow truck will have "Jane's Auto Care' on its doors, hood, and back tailgate-a form of free advertising wherever the tow truck goes. Rick estimates that, at a minimum, these benefits would be worth the following Calculate the net present value, ignoring the additional benefts described by Rick. (ff the net present volue is negative, use either negotive sign preceding the number es - 45 or parentheses es. (45). Round answer to O decimal places, es. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided)

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