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The owner of a restaurant wishes to select the best alternative between; Buy a van to transport items from the market place to the restaurant,

The owner of a restaurant wishes to select the best alternative between; Buy a van to transport items from the market place to the restaurant, or pay for a daily utility car. If you buy the truck, it has an initial cost of $16'000, which will be paid with an initial installment of 25% and the rest in four equal installments in months 6,18,26 and 44, without financing. $85.00 monthly maintenance costs and $450 bi-annual repairs. He will use the truck for 5 years and will sell it at the end of that time for $8,500. On the other hand, you can use public service vehicles making a daily trip to the square (30 days a month) and paying $4.50 for each trip. Select the best alternative for an opportunity rate of 28% nominal quarterly. Determine, at the end of five years, how much the restaurant owner will have saved by choosing the cheapest system.

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