Given Data P10-16A: SWIFT DELIVERY Cash capital acquired $ 4,000,000 Alternative 1: Cost of new vans Expected annual cash inflow increase $ 55 $ 900,000 325,000 Useful life of new vans 4 Combined salvage value of new vans Additional working capital needed 6969 $ 100,000 $ 50,000 Alternative 2: Cost of new trucks Reduction in cash outflow-year 1 Reduction in cash outflow-year 2 $ 1,000,000 $ 175,000 $ 375,000 Reduction in cash outflow-year 3 $ 450,000 Reduction in cash outflow-year 4 $ 500,000 Useful life of new trucks 4 Salvage value of new trucks Training costs required S69 $ 81,250 $ 20,000 Desired rate of return 10%