II. Investment Appraisal HK Parcels plc is a delivery company that has been making losses in recent years in a very competitive market. HK P arcels plc is now considering a project to purchase 10 new electric delivery vehicles to replace older diesel delivery ehicles. The other information and requirements are available as the following photos showed: fficulties in raising funds to d at a high rate of interest. !0%. kr 52.50 per calintal costs volved by the 10 new delivery vehi The delivery whicles are to be deprecated over 5 years L-lise method, the residual value of the delivery vehicles in 50 000 cac delivery chick will make 50 deliverien perdre delivery Your and Yest cach delivery chick will make 65 ddivers Ces 3.00 per delivery Year and Yearseach delivery vehicle will make so deliveries pe es delivery fears 105, drivers will be paid 0.50 per delivery Year I and Year 2 othering costs (including direction will week per delivery vehicle Year and Year 4 other mening costs (including depreciation will weck per delivery vehicle Sotherming costs including dejectice will be 5000 a wa w for each of the 5 years of th iod of the project. zalue of the project. K Parcels plc, using your cal verile last day of Yeu 5, all the delivery vehicles will be sold for livery vehicles will be operated for 6 days per week for 30 weeks a IK Parcels plc have had difficulties in raising funds to finance bank is only prepared to lend at a high rate of interest. The cos Parcels plc for the project is 20%. Required: (1) Calculate the net cash flow for each of the 5 years of the projec 2) Calculate the payback period of the project. 3) Calculate the net present value of the project. 4) Evaluate the project for HK Parcels plc, using your calculations The total initial costs involved in buying the 10 new de $600000. The delivery vehicles are to be depreciated ove straight-line method, the residual value of the delivery vehicle In Year 1, each delivery vehicle will make 50 deliveries customers $2.50 per delivery. In both Year 2 and Year 3, each delivery vehicle will make 6 charging customers $3.00 per delivery. In both Year 4 and Year 5, each delivery vehicle will make 80 charging customers $3.50 per delivery. In all Years 1 to 5, drivers will be paid $0.50 per delivery. In both Year 1 and Year 2, other running costs (including depr $800 a week per delivery vehicle. In both Year 3 and Year 4, other running costs (including depr $900 a week per delivery vehicle. In Year 5, other running costs (including depreciation) will be delivery vehicle. On the last day of Year 5, all the delivery vehicles will be $50000 The delivery vehicles will be operated for 6 days per week, fo