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Your company is considering the replacement of an old delivery van with a new one that is more efficient. The old van cost $ 4
Your company is considering the replacement of an old delivery van with a new one that is more efficient. The old van cost $ when it was purchased years ago. The old van is being depreciated using the simplified straightline method over a useful life of years. The old van could be sold today for $ The new van has an invoice price of $ and it will cost $ to modify the van to carry the company's products. Cost savings from use of the new van are expected to be $ per year for years, at which time the van will be sold for its estimated salvage value of $ The new van will be depreciated using the simplified straightline method over its year useful life. The company's tax rate is Working capital is expected to increase by $ at the inception of the project, but this amount will be recaptured at the end of year five. What is the terminal cash flow, to the nearest dollar?
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