Current Attempt in Progress

Fink Co$.$ is interested in purchasing a new business vehicle. The vehicle costs $$70,000$ and will generate constant$-$dollar delivery

revenue of $$16,000($year $0$ dollars$)$ for each of the next $6$ years. At the end of the $6$ years, the vehicle will have a salvage value of

$$3,000.$ The tax rate is $21\%,$ and annual inflation is $4\%.$ Assuming that the vehicle is depreciated using MACRS $(5-$year property class$)$

and that Fink Co$.$ uses an after$-$tax real interest MARR of $8\%,$ compute the PW$,$ and determine whether Fink Co$.$ should purchase the

new business vehicle.

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Click here to access the MACRS$-$GDS Property Classes.

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Click here to access the MACRS$-$GDS percentages for $27\mathrm{.}5-$year residential rental property.

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Carry all interim calculations to $5$ decimal places and then round your final answer to $2$ decimal places. Use a minus sign to enter

your answer, if any. The tolerance is $+-$$$10\mathrm{.}00.$

Should Fink Co$.$ purchase the delivery vehicle?