XYZ Ltd is considering investing in a van, which will make substantial savings when compared with the cost of the delivery service currently being used. The cost of the van is £45,000; it will have a five year life and a residual value of £5,000. The cash savings are estimated to be:
Year £ 1. 10,000, 2. 12,000, 3. 14,000, 4. 12,000, 5. 8,000
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