Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will
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Question:
Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing fullydepreciated vans, which you think you can sell for $ a piece and which you could probably use for another years if you chose not to replace them. The NV vans will cost $ each in the configuration you want them, and can be depreciated using MACRS over a year life, but you are unable to make use of either bonus depreciation or Section expensing. Expected yearly beforetax cash savings due to acquiring the new vans amounts to about $ each. If your cost of capital is percent and your firm faces a percent tax rate, what will the cash flows for this project beRound your answers to the nearest dollar amount.
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