In your answer how did you get the 40,00,000 ? I this not supposed to be 4,000,000?

QUESTION 1 Mia Carriers has determined that a new specialised delivery truck needs to be purchased. The truck a positive net present value NPV of R480 000, calculated using the company's WACC of 20%. Th leased from the manufacturer. The lease agreement requires 5 annual payments of R800 oo payment due on the delivery of the vehicle. The truck can also be purchased at a cost of R4 mill a 4-year maintenance contract with the manufacturer. The R4 million will be paid upon delivery has enough reserves to cover the cost of truck in cash. The truck can be depreciated at 25% per reducing balance method and will be sold at book value at the end of 4 years. Assume a curre rate of 30% and a pre-tax cost of debt of 20%. Required: 1.1 Determine the after-tax cash flows and the net present value of the cash outflows unde 1.2 Briefly indicate which alternative should be recommended