need help

Franklin Delivery is a smal compary that transports business packages between New York and Chicogo. It operates a fleet of smali vans that moves peckages 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. Franklin Delivery recently acquired approximately $6.9 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 fleet of city vans at a cost of $740,000. He argues that more vans would enable the compony to expand is services into new markets, thereby increasing the revenue base, More specificaly, he expects cash inflows to increase by $330,000 per yeat. The additional vans are expected to have an average useful iffe of four years and a combined salvage value of $108,000. Operating the vans will require additional working capital of $34,000, which will be recovered at the end of the fourth year. In controst, Oscar Vance, the company's chief accountam, believes that the funds should be used to purchase large trucks to deliver the packeges betwisen the depots in the two cities. The conversion process would produce continuing improvement in operating savings and teduce cash outlows as follows. The in tge trucks are expected to cost $820,000 and to heve a four-year useful ufe and a $89,000 salvage value. In addition to the furchis se price of the thicks, up-front training costs are expected to amount to $11,000. Franklin Delivery's manogement has estah shed a 16 percent desired rate of return. (PV of SI and PVA of \$1) (Use appropriate factor(s) from the tables provided.) Required a. 6 b. Determine the net present value and present value index for each investment altemative. (Round your intermediate calculations and final answers to 2 decimal places. Enter your answer in whole dollars and not in millions.)