Delta Logistics is considering investing in new delivery trucks. The initial investment is $500,000, and the expected life of the trucks is 5 years with no salvage value. The expected annual cash flows are $120,000. The company’s cost of capital is 10%.

Requirement: Calculate the net present value (NPV) and the internal rate of return (IRR) for the investment. Should Delta Logistics invest in the new trucks? Justify your answer with the calculations.

###question_divider###