10 20 Imperial Star Destroyer Delivery is a small company that transports Kyber crystals between total and Bespin operates a neer of small transport ships that moves crystals to and from a central depot within each planet and a common carrier to deliver the crystal between the depots on the two planets Imperial Star Destroyer Delivery recently acquired approximately 5o 3 min of cas capital from its owners and its president Lando Calrissian w trying to kdentify the most profitable way to invest these funds Han Solo, the company's operations Manager, bebeves that the money should be used to expand the fleet of transport ships at a cost of $740.000. He argues that more this would enable the company to expand its services into new markets, thereby increasing the rovence base, More specifically, he expects cash inflows to increase by $330.000 per year. The additional ships are expected to have an average useful Me or four years and a combined salvage value of 593,000 Operating the ships will requere additional working capital of 549,000, which will be recovered at the end of the fourth year in contrast Luke Skywalker, the company's chief accountant bebeves that the funds should be used to purchase a freighter to deliver the crystals between the depots in the two chies The conversion process would produce continuing improvement in operating savings and reduce cash outflows as follows Year 1157.000 5911,000 $399,000 5433.ece The large freighters are expected to cost $820,000 and to have a four-year useful life and a $86.000 salvage value. In addition to the purchase price of the freighters, up front pilot training costs are expected to amount to $17,000 Imperial Star Destroyer Delivery's management has established a 12 percent desired rate of return of St and PVA of $.1) (Use appropriate factors) from the tables provided.) Required a.lb. Determine the net present value and present value index for each investment alternative (Round your intermediate calculations and final answers to 2 decimal places. Enter your answer in whole dollars and not in millions.) Purchase of Transport Shop Phirchase of Freight) Not Prosant Value (NPV) Presort Vindex (PV)