Total truck fleet replacement would require $2 million while the existing fleet has a salvage value of $500,000. The companys weighted average cost of capital is 15% and a marginal tax rate of 30%. The management engaged a revenue management consulting firm to evaluate their business needs. The consultant fee cost $40,000. The consultant proposes two options to the management team. Option A would cost $195,000, while Option B would cost $350,000. Option A is a semi-automated revenue management planning solution that can enhance the revenue generation decision of their analyst team. Option B is a fully automated solution that can enhance revenue generation and additional savings on analyst resources. Another possibility is to internally develop a revenue management planning solution. The IT department has the resources for semi-automated revenue management development using existing capacity. However, it will take 2 years to develop. IT department estimated 200 hours at a $400 per hour rate is required for this project. The hardware is common to each option, and the salvage value of the hardware is expected to be zero after 3 years. The expected net cash flow of each option is as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Option A $90,000 $90,000 $70,000 $70,000 $50,000 Option B $160,000 $160,000 $150,000 $145,000 $130,000 Internal Develop 0 0 $70,000 $70,000 $50,000 Rapid technology development means that the system may become obsolete earlier than the projection. They want to see if the net present value still makes sense within a three-year time frame. The CFO suspects the discount rate may go up by 2% if the central banks monetary tightening policy continues. Calculation everything - tax , salvage value, npv