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(9 points) AM Express Inc. is considering the purchase of an additional delivery vehicle for $55,000 on January 1, 2018. The truck is expected to

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(9 points) AM Express Inc. is considering the purchase of an additional delivery vehicle for $55,000 on January 1, 2018. The truck is expected to have a five-year life with an expected residual value of $15,000 at the end of five years. The additional revenues from the added delivery capacity are expected to be $58,000 per year for each of the next five years. The driver will cost $42,000 in 2018, with an expected salary increase of $1,000 for each year thereafter. The annual operating costs for the truck are estimated to be $3,000 per year. Calculate the net present value of this investment using an interest rate of 12%. (Show vour work!!)

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