th and without tax 10-2 Problem 10-17B Applying the net present value approach with and withou considerations d $640,000 for new Ben Baxi, the president of Ben's Moving Services, Inc., is planning to spend 5640 trucks. He expects the trucks to increase the company's cash inflow as follows. Planning for Capital Investments Year 1 Year 2 $165,000 Year 3 $196,000 estment $180,000 Year 4 $240,000 any's policy stipulates that all investments must earn a minimum rate of return of The company's policy stipula for 10 percent Required tional Iward 2. Compute the net prese nd financial figures to nearest whole dollar. uite the net present value of the proposed purchase. Should Mr. Baxi purchase the trucks! wherly Hall, the controller, is wary of the cash flow forecast and points out that Mr. Baxi led to consider that the depreciation on trucks used in this project will be tax deductible, The depreciation is expected to be $150,000 per year for the four-year period. The company's income tax rate is 30 percent per year. Use this information to revise the company's expected cash flow from this purchase. Compute the net present value of the purchase based on the revised cash flow forecast. Should Mr. Baxi purchase the trucks? Fina