Answer :
Net present value = -$30,284.90
Net present value = -$15,699.78
Explanation :
As per the data given in the question,
Particulars Amount Factor Purchase
Cost of new vehicle -$33,500 1 -$33,500.00
Annual Maintenance -$1,200 3.605 -$4,326.00
Less : Salvage value $13,300 0.567 $7,541.10
Net Present value -$30,284.90
Particulars Amount Factor Purchase
Cost of new vehicle $0 1 $-
Annual Maintenance -$4,355 3.605 -$15,699.78
Less : Salvage value $0 0.567 $-
Net Present value -$15,699.78
We simply multiplied the amount with the factor so that the purchase amount could come
