A company is considering expanding its current operations by adding new trucks to its fleets. The company expects to increase revenue with its assets expansion project.. The firm plans to depreciate the trucks over a 6 year economic life using MACRS to sell the trucks after 6 years. The firms marginal tax rate is 34%. The following are estimates of the projects incremental cash flows: The purchase price of the trucks is $495,000. Delivery cost of $5,000 will be incurred. The initial investment required in net operation working capital will total $25,000. Revenues of $300,000 in year one, $350,000 in year two and tree and $375,000 in year 4 through 6 are expected. The following rates will be used to depreciate the trucks from years one through six respectively. 20%, 32%, 19.2%, 11.52%, 11.52% and 5.76%. Operating expenses excluding depreciation amount to 40% of cash revenues. Salvage value of 100,000 is expected in year six. i. Calculate the initial annual operating and terminal cash flows associated with the trucks ii. Use the NPV evaluation technique to determine if the rucks should be purchased using a 144% cost of capital.