Nancy’s Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $30,000 per year. Nancy can buy a used truck for $12,000 that will be adequate for the next 5 years. Operating and maintenance costs are estimated to be $24,500 per year. At the end of 5 years, the used truck will have an estimated salvage value of $3,000. Nancy’s MARR is 20%/year.
What is the present worth of this investment? $