Given Data P10-16A: SWIFT DELIVERY Cash capital acquired $ 4,000,000 Alternative 1: Cost of new vans 900,000 Expected annual cash inflow increase 325,000 Useful life of new vans 4 Combined salvage value of new vans 100,000 Additional working capital needed 50,000 Alternative 2: Cost of new trucks 1,000,000 Reduction in cash outflow-year 1 175,000 Reduction in cash outflow-year 2 375,000 Reduction in cash outflow-year 3 450,000 Reduction in cash outflow-year 4 500,000 Useful life of new trucks 4 Salvage value of new trucks 81,250 Training costs required 20,000 Desired rate of return 10%Problem 10-16A SWIFT DELIVERY Net Present Value Calculations Alternative 1: Cash Inflows Amount Table Value Present Value Annual Cash Inflows Salvage Value Working Capital Recovery Total cash inflow Cash outflows Cost of Vans Working Capital Increase Net Present Value Alternative 2: Cash Inflows: Amount Table Value Present Value Year 1 Year 2 Year 3 Year 4 Salvage Value Total cash inflow Cash Outflows Cost of Trucks Training Cost Net Present Value b. Present Value Indexes: Alternative 1 Alternative 2