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You are planning to buy a delivery van for your postal business contract which is worth $60,000 and you expect to earn $7000/year for the

  1. You are planning to buy a delivery van for your postal business contract which is worth $60,000 and you expect to earn $7000/year for the next six years. You will sell your van after six years because your business contract will finish a after six years. The salvage value of your van at that time will be $17,000. Calculate the payback period. Find how much your profit/loss in this investment is.

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