11. XYZ Company has been offered a seven-year contract to haul munitions for the government. Since this contract would represent new business, the company would have to purchase several new heavy duty trucks at a total cost of $350,000, if the contract were accepted. Other information relating to the contract appears below: Annual net cash inflows from the contract Cost of replacing the motors in the trucks at the end of four years Salvage value of the trucks at the end of seven years $105,000 $ 45,000 $ 18,000 To raise money to assist in the purchase of the new trucks, the company will sell several old, fully depreciated trucks for a total selling price of $16,000. The company has a 12% cost of capital and a 30% income tax rate. REQUIRED: Calculate the net present value of this investment opportunity. Would you recommend XYZ Company accept the contract?