Net Present Value Method for a service company

Coast-to-Coast inc. is considering the purchase of an additional dellvery vehicle for $70,000 on lanuary 1,20y1. The truck is expected to have a 5 -year life with an expected residual value of $15,000 at the end of 5 years. The expectod additional revenues from the added delivery capacity are anticipated to be $65,000 per year for each of the next 5 years. A driver will cost $40,000 in 20r1, with an expected annual salary increase of $2,000 for each year thereaftec, The annual operating costs for the truck are estimated to be $6,000 per year: a. Determine the expected annual net cash flows from the delivery truck investment for 20Y120Y5. b. Compute the net present value of the investment, assuming that the minimum desired rate of return is 12%. Use the table of the present value of $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. c. Is the additional truck a good investment based on your analysis? , because the net present value is