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What is the annual user cost of a van

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A delivery company can buy a new van for $50,000. It can ?nance the purchase with a bank loan. The annual interest rate is 12%. Interest payments are tax deductible and the corporate tax rate is 30%. The company estimates that it will be able to sell the van a year later for $30,000. Any capital loss is tax deductible. What is the annual user cost of a van?

Reference no: EM13887955

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