Apply: Chapter 9 Problems Saved 1 Arkansas Best Freightways is considering a purchase of three different potential trucks. it is considering three different investment scenarios and their respective cash flows. Arkansas Best Freightways use a cost of capital of 9 percent to evaluate the investments. 2.5 points Cost of Capital 9% Year Year (today) Year 1 Year 2 Year 3 Year 4 Buy new truck Increased profits Increased profits Increased profits Increased profits Investment 1 (85,000) 25,000 25,000 25,000 25,000 Investment 2 (105,000) 20,000 30,000 40,000 50,000 Investment 3 (125,000) 40,000 30,000 20,000 10,000 eBook Print Required: 1. Calculate the net cash flows (not discounted) over the life of the three investments (years 0 to 4). (Negative amounts should be entered using a minus sign.) References Investment 1 Investment 2 Investment 3 $ 15,000 $ 35,000 $ (25,000) Net cash flows over life (not discounted) 2. Calculate the present value for each of the three possible investments over years 1 through 4, using the 9 percent cost of capital as the interest (or discount) rate. (Round your answer to 2 decimal places. Use the Excel NPV() function to calculate the present value for each of the three possible investments.) Investment 1 Investment 2 Investment 3 Present Value