Net Present Value Method for a Service Company AM Express Inc. is considering the purchase of an additional delivery vehicle for $54,000 on January 1, 2011. The truck is expected to have trade with an expected schon value of $6,000 at the end of five years. The expected additional revenues from the added delivery capacity are noted to be 0.000 per triver will cost $48,000 in 2091, with an expected annual salary increase of $4,000 for each year thereafter the annual operating costs for the truck are estimated to be 17.000 per yeur Present Value of $1 at Compound Interest Year 10 1296 15 20% 1 0.943 0.900 0.893 0.370 0.833 2 0.000 0.8.26 0.797 0.750 0.694 0.140 0.751 0.712 0,056 0.579 4 0.792 0.633 0.636 0.572 0.482 5 0.747 0.623 0.567 0.497 0.402 6 0.705 0.564 0.502 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0127 0.233 0.592 0.424 0.361 0.2014 0.194 10 0.555 0.366 0.322 0.247 0.162 a. Determine the expected annual net cash flows from the delivery truck investment for 2011-2015 Annual Net Cash Flow 2011 Previous Next ebook 0.407 0.404 0.627 0.592 9 0.424 0.327 0.284 0.247 0.361 0.322 0.233 0.194 0.162 10 0.55 0.386 .. Determine the expected annual net cash flows from the delivery truck investment for 2011-2015 Annual Net Cash Flow 2011 2012 2013 2014 2015 b. Calculate the net present value of the investment, assuming that the minimum desired rate of return is 6%. Use the table of the present value of stesented above. When required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value Present value of annual net cash flow Less investment Net present value c. is the additional truck a good investment based on your analysis