Barbara, owner of a small floral shop, owns a delivery van and parks it in the single garage attached to her store. It has been the perfect

set$-$up thus far. Her business is booming, though, as her reputation for quality floral products has increased her company's appeal

throughout the city. To expand, she is thinking about selling her fully depreciated delivery van and leasing one instead. If she does this,

she plans to park the leased vehicle in the alley behind the store and use the available garage stall to expand her operational space.

Additional details related to her options are as follows.

$($a$)$

Your Answer

Correct Answer $($Used$)$

Given the information above, will Barbara be better or worse off financially if she sells her van and leases one instead? Use Excel

to organize your analysis. By how much is she better or worse off? Specify the amount on an annual basis.

Barbara would be

by $

$.$

$($C$)$

Your answer is partially correct.

In addition to the quantitative information above, Barbara later recognizes that her own van still gets decent gas mileage using

regular fuel, whereas the leased van would require premium fuel instead. She estimates the higher fuel cost would be $$0\mathrm{.}04$ per

mile with the leased van. Her delivery van usually travels $2,400$ miles per month. She also later realizes that her vehicle insurance

will go up if she leases, as the lease requires full coverage on the vehicle. The additional cost per month for insurance is estimated

to be $$200.$ Considering this additional information, does the quantitative analysis result in the same conclusion as in part $($a$)?$

Barbara would be

by $

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