Question: Flowers For Everyone is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information

Flowers For Everyone is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow:

Existing van New van

Original cost$100,000 $180,000

Annual operating cost$35,000 $20,000

Accumulated depreciation$60,000

Current salvage value of the existing van$45,000

Remaining life10 years10 years

Salvage value in 10 years$0$0

Annual depreciation$4,000$ 18,000

If Flowers For Everyone replaces the existing delivery van with the new one, over the next 10 years income will:

How do you do problem? It says the answer is increase 15000 but I have no idea how to get to that

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