Net Present Value Method for a Service Company

Present value of $1$ t at Compound Interest

a$.$ Determine the expected annual net cash flows from the delivery truck investment for $20$V$1-20$V$5.$

Present value of annual net cash flows

$

$+$

$!$

$!$

Investment Net present value

$!$

c$.$ Is the additional truck a good investment based on your analysis?

$,$ because the net present value is I

$.$