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What is the present value of the truck purchase

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Question - Candy Cups thinks that offering delivery will increase their sales. Candy is considering whether to purchase a used delivery truck, or hire a delivery service. The truck will cost $12,000 and last roughly 5 years. The delivery service will charge $3,600 per year for the next five years. Candy can borrow from the bank at 8%. What is the Present Value of the truck purchase?

a. $1,200/month

b. $2,400/year

c. $12,000

d. $18,000

Reference no: EM133165962

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