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Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully - depreciated vans, which
Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing fully
depreciated vans, which you think you can sell for $ a piece and which you could probably use for another years if you chose
not to replace them. The NV vans will cost $ each in the configuration you want them, and can be depreciated using MACRS
over a year life, but you are unable to make use of either bonus depreciation or Section expensing. Expected yearly beforetax
cash savings due to acquiring the new vans amounts to about $ each. If your cost of capital is percent and your firm faces a
percent tax rate, what will the cash flows for this project beRound your answers to the nearest dollar amount.
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