Question: Please Help. Last Question on homework. Im not sure how to complete. Robinson Co. is interested in purchasing a new delivery vehicle so it can

Please Help. Last Question on homework. Im not sure how to complete.Please Help. Last Question on homework. Im not sure how to complete.

Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle costs $75,000 and will generate delivery revenue of $30,000 in year 1 ; they anticipate this revenue will increase by 5% 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 $60,000 that charges 4% 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 $10,000 (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 10\%, compute the PW and determine whether Robinson Co. should purchase the new business vehicle

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