You are considering investing in a project which would involve upgrading your firms delivery vehicle. The new vehicle is expected to save $10,000 per year in gasoline and other expenses and would cost $40,000 to purchase. You expect the vehicle would have a useful life of 5 years then would need to be retired from service with no alternate uses, and no salvage value. Your treasurer believes your firms WACC (weighted average cost of capital), the rate you need to earn on projects in order to keep from destroying value, is 15%. Your company has a policy that all new projects must payback in full withing 3 years of the capital investment. Ignore taxes for this. 1. What is the NPV of this project? (Round to the nearest whole Dollar) 2. True/False: based solely on the NPV you computed in question 1, your company would improve its value if it would undertake this project? 3. Up to what price should your firm be willing to pay to undertake the project. (Round your answer to the nearest whole Dollar)