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Net present value method for a service company $ 2 , 0 0 0 per year. Present Value of $ 1 at Compound Interest a

Net present value method for a service company
$2,000 per year.
Present Value of $1 at Compound
Interest
a. Determine the expected annual net cash flows from the delivery truck investment for 20Y1-20Y5.
Annual Net Cash Flow
required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value.
Present value of annual net cash
flows
Investment
Net present value
c. Is the additional truck a good investment based on your analysis?
, because the net present value is
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