You are thinking of starting a pizza delivery business. You already have paid $200 for a report containing estimates required to analyze the business.

Purchase price of delivery vehicle $5000

Annual revenue $8000

Annual expenses $4000

Tax Rate 15.5%

Discount Rate 7%

CCA rate 30%

A) what is the NPV of running the business for 3 years, if you keep the car after?

B) what is the NPV of running the business for 3 years if you sell the car at the end of the third year for $1500.