Current Attempt in Progress

Robinson Co$.$ is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle

costs $$82,000$ and will generate delivery revenue of $$33,000$ in year $1$ ; they anticipate this revenue will increase by $4\%$ in each of the

following five years $($years $2-6)$ due to inflation. If Robinson Co$.$ purchases the vehicle, it will take a loan for $$66,000$ that charges $3\%$

annual interest and repay the loan in $6$ equal end of year payments. At the end of the $6$ years, the vehicle will be sold for $$13,000($in

then$-$current dollars$).$ The tax rate is $25\%.$ Assuming that the vehicle is depreciated using MACRS $(5-$year property class$)$ and that

Robinson Co$.$ uses an after$-$tax MARR of $9\%,$ compute the PW and determine whether Robinson Co$.$ should purchase the new business

vehicle.

Click here to access the TVM Factor Table calculator.

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

Click here to access the MACRS$-$GDS percentages page.

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 a whole number. Use a minus sign to enter

your answer, if any. The tolerance is $+-$$$10.$

Should Robinson Co$.$ should purchase the delivery vehicle?

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