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You are considering purchasing an electric van for your business. The van will cost you $135,000 and has a scrap value of $10,000 after its
You are considering purchasing an electric van for your business. The van will cost you $135,000 and has a scrap value of $10,000 after its 8 year life. Total gas savings will be $12,000 in the first year, increasing by $6,000 each year thereafter. However, there are additional annual operating costs of $5,000 from the first year onwards. Your MARR is 10%.
In your cash flow diagram, what is the net (total of benefits minus costs) amount in the final year (8th year)?
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