Question: (c) Q Ac Determine how much the additional benefits would have to be worth in order for the van to be purchased. Qu Additional benefits

(c) Q Ac Determine how much the additional(c) Q Ac Determine how much the additional(c) Q Ac Determine how much the additional(c) Q Ac Determine how much the additional(c) Q Ac Determine how much the additional
(c) Q Ac Determine how much the additional benefits would have to be worth in order for the van to be purchased. Qu Additional benefits would need to have a total present value of at least $ Acc Vie e Textbook and MediaCalculate the net present value, incorporating the additional benefits suggested by the assistant manager. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to O decimal places, e.g. 5,275.) Net present value $ Should the van be purchased? Van V be purchased.\f\fJennifer's Pet Shop is considering the purchase of a new delivery van. Jennifer Smith, owner of the shop, has compiled the followin estimates in trying to determine whether the delivery van should be purchased: Cost of the van $41,100 Annual net cash flows 6,950 Salvage value 4,950 Estimated useful life 8 years Cost of capital 10% Present value of an annuity of 1 5.33493 Present value of 1 0.46651 Jennifer's assistant manager is trying to convince Jennifer that the van has other benefits that she hasn't considered in the initial estimates. These additional benefits, including the free advertising the store's name painted on the van's doors will provide, are expected to increase net cash flows by $520 each year. TARI

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