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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

image text in transcribedimage text in transcribed 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. 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.) 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.)

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