Question: I need help developing a financial comparison statement for the following: Your father has a garden maintenance company and one of the company vans needs

I need help developing a financial comparison statement for the following: Your father has a garden maintenance company and one of the company vans needs to have its gearbox replaced. He has explained to you that his accountant has compared the cost of a new van with repairing the old and concluded that the new van would be less expensive when all costs are considered. Based on research, the current van could be sold for 5,000 and a new one bought for 30,000, or alternatively, the current van could be repaired at a cost of 8,500. The annual running costs of the two vans would be 11,700 for the old one, or 9,000 for the new (with better fuel efficiency and lower servicing costs). Whichever way he chooses he has decided that in future he will sell either van after five years, when their value is estimated to be 1,000(old van) or 6,500(new van). He has calculated that the old van would cost a total of 66,000(8,500+5x11,7001,000) the next five years, compared to 63,500(30,0005,000+5x9,0006,500) for the new.

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