Help Save & alt Submit 2 Vernon 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 carrier to deliver the packages between the depots in the two cities. Vernon Delivery recently acquired approximately $6.7 million of cash capital from its owners and its 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 city vans at a cost of $310.000. 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 inflows to increase by $290,000 per year. The additional vans are expected to have on average useful life of four years and a combined salvage value of $98,000 Operating the vans will require additional working capital of $40,000, which will be recovered at the end of the fourth year In contrast, Oscar Vance, the company's chief accountant believes 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 follows TH ve 140,000 The large trucks we expected to cost $890,000 and to have a few year solfe and a $85.000 salvage value. In addition to the purchase price of the trucks, up front training costs are expected to amount to $1.000 Vernon Delivery management has established a percent desired rate of retur pro 51 and EVA (Use appropriate factor(s) from the tables provided) Required ..55. Determine the net present value and present value index for each investment alternative Round your intermediate calculations and final answers to 2 decimal places. Enter your answer in whole dollars and not in millions.) Purchase of This PC Vans Natra NPV) PV) P LUV at the end of the fourth year. In contrast, Oscar Vance, the company's chief accountant believes 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 follows Year 1 Year 2 Years Year 1154,000 0313,000 3405.000 The large trucks are expected to cost $890.000 and to have a four year useful life and a $85,000 salvage value. In addition to the purchase price of the trucks, up front training costs are expected to amount to $14,000 Vernon Delivery's management has established a 14 percent desired rate of return Poland PVA of 50 (Use appropriate factor(s) from the tables provided.) Required a... Determine the net present value and present value index for each investment alternative Round your intermediate calculations and final answers to 2 decimal places. Enter your answer in whole dollars and not in millions.) the Oy Purch Vare Note (NPV) Present Value PVN