Question: Candy Cups thinks that offering delivery will increase their sales. Candy is considering whether to purchase a used delivery truck, or hire a delivery service.

Candy Cups thinks that offering delivery will increase their sales. Candy is considering whether to purchase a used delivery truck, or hire a delivery service. The truck will cost $12,000 and last roughly 5 years. The delivery service will charge $3,600 per year for the next five years. Candy can borrow from the bank at 8%. What is the Present Value of the truck purchase?

	a.	$1,200/month
	b.	$2,400/year
	c.	$12,000
	d.	$18,000

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