What is the present worth of this investment? $

What is the decision rule for judging the attractiveness of investments based on present worth?

*IF PW > 0 accept, if not, reject

*IF PW

* none of the above

Should Nancy buy the truck? yes or no?

Nancy's Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $34,500 per year. Nancy can buy a used truck for $8,000 that will be adequate for the next 6 years. Operating and maintenance costs are estimated to be $24,000 per year. At the end of 6 years, the used truck will have an estimated salvage value of $4,000. Nancy's MARR is 21%/year