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2 . Gibson Delivery is a small company that transports business packages between New York and Chicago. It operates a fleet of small vans that moves packages to and from a central depot within each city and uses a common cartier to deliver the packages between the depots in the two cries Gibson Delivery recently acquired approximately $64 million of cash capital from its owners, and is president George Hay, is trying to identify the most profitable way to invest these funds Todd Payne, the company's operations Manager believes that the money should be used to expand the feet of hy vans at a cost of $720,000. He argues that more vans would enable the company to expand its services into new markets, thereby increasing the revenue base. More specifically, he expects cash infows to increase by $280,000 per year. The additional vans are expected to have an average useful life of four years and a combined salvage value of $102.000 Operating the vans will require additional working capital of $36,000, which will be recovered at the end of the fourth year In contrast, Oscar Vance, the company's chief accountant beleves that the funds should be used to purchase large trucks to deliver the packages between the depots in the two cities. The conversion process would produce continuing improvement in operating savings and reduce cash outflows as follow Year Year Years Year $110.000 396,000 3445,000 o rence The large trucks we expected to COM $800.000 and to have a four-year useful life and a $80,000 salvage value in addition to the purchase price of the trucks, up front training costs are expected to amount to $15,000 Gibson Delivery's management has established a 10 percent desired rate of return of Stand PVA S1) (Use appropriate factor(s) from the tables provided) Required 2.3. Determine the net present value and present value index for each investment amative. (Round your intermediate calculations and final answers to 2 decimal places. Enter your answer in whole dollars and not in millions.) Purchase of City Vans Purchase of Tri Net Present INPV) Pre Wed IPVO