Nancy’s Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $31,000 per year. Nancy can buy a used truck for $9,500 that will be adequate for the next 3 years. Operating and maintenance costs are estimated to be $22,500 per year. At the end of 3 years, the used truck will have an estimated salvage value of $4,200. Nancy’s MARR is 20%/year.
What is the present worth of the investment?