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Coast-to-Coast Inc, is considering the purchase of an additional delivery vehicle for $39,000 on January 1, 20Y1. The truck is expected to have a 5

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Coast-to-Coast Inc, is considering the purchase of an additional delivery vehicle for $39,000 on January 1, 20Y1. The truck is expected to have a 5 -year lifo with an expected residual value of $7,000 at the end of 5 years. The expected additional revenues from the added delivery capacity are antiopated to be $78,000 per year for each of the next $ years. A driver will cost $57,000 in 20y1, with an expected annual salary increase of $5,000 for each year thereafter. The annual operating costs for the truck are estimated to be $3,000 per year. a. Determine the expected annual net cash flows from the delivery truck imvestment for 20Y1-20r5; a. Determine the expected annual net cash flows from the delivery truck investment for 20Y1-20Y5. b. Compute the nd present value of the investment, assuming that the minimum desired rate of return is 10%. Use the table of the present value of $1 presented above. When required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. c. Is the additional truck a good investment based on your analysis? , because the net present value is

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