iii. Based on your calculated NPV value would you recommend this option as a good option to pursue? [2 Marks] iv. V. What is the simple payback period for this option? [4 Marks] If the use of the new system only reduced the fleet distance traveled by 5%, would your recommendation change? [2 Marks] mestion 1: [20 Marks] A rapidly expanding courier company is exploring the option of purchasing an improved software and communication system for job scheduling. The company's vehicle fleet currently travels about 300.000 km per year and it is estimated that using the software could reduce the distance by 10%. The current vehicle cost per kilometer traveled is $0.71 km. The cost of purchasing.' installing, and getting the new system operational is $39,000. The system is expected to meet the company's needs for about 5 years at which time it will be replaced by an updated system. What is the Net Present Value of this option? 18 Marks] [ H. The company is in a very competitive environment and so has a short-term view when it comes to returns on investment. Therefore, it uses a discount rate of 15% What is the effect of using such a high discount rate on NPV? (Ignore any inflation effects in this analysis). [4 Marks)