Question: A Iowa - based company is purchasing a delivery van for $ 2 8 , 0 0 0 . The van will be depreciated under

"A Iowa-based company is purchasing a delivery van for $28,000. The van will be depreciated under MACRS as a five-year property. The van's market value (salvage value) is expected to decrease by $3,700 per year. It is expected that the purchase of the van will increase its revenue by $11,000 annually. The O&M costs are expected to be $2,800 per year. The firm is in the 21% tax bracket, and its MARR is 14%. If the company plans to keep the van only two years, what is the net present worth?"

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