Milenium Falcon Delivery is a small company that transports Kyber crystals between Lothal and Bespin. It operates a fleet of small transport ships that moves crystals to and from a central cepot within each planet and uses a common carrier to deliver the crystals between the depots on the two planets. Milennium Falcon Delivery recently acquired approximately $6.5 million of cash capital from its owners, and its president, Lando Calrissian, is trying to identify the most profitable way to invest these funds. Han Solo. the company's operations manager, believes that the money should be used to expand the fleet of transport ships at a cost of S730,000. He argues that more ships 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 $320,000 per year . The additional ships are expected to have an average useful life of four years and a combined salvage value of $95.000. Operating the ships will require additional working capital of 548 000, which will be recovered at the end of the fourth year. In contrast, Luke Skywalker the company's chief accountant, believes that the funds should be used to purchase a freighter to deliver the crystals between the depots in the two cities. The conversion process would produce continuing improvement in operating savings and reduce cash outflows as follows $164,000 Year 3328,000 Year I 5407.000 Year 4 5449,000 Than savings and reduce cash outflows as follows Year $164,000 Year 5407,000 Year 4 5449,000 $320.000 The large freighters are expected to cost $810.000 and to have a four-year useful life and a $74,000 salvage value. In addition to the purchase price of the freighters, up-front pilot training costs are expected to amount to $18,000. Milennium Falcon Delivery's management has estabiished a 8 percent desired rate of return. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required 6.8b. 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 Transport Ships Purchase of Freighter() Net Present Value (NPV) Present Volue Index PVO