Net Present Value Method for a Service Company AM Express Inc. is considering the purchase of an additional delivery vehicle for $32,000 on January 1, 2011. The truck is expected to have a 5-year life with an expected residual value of $6,000 at the end of 5 years. The expected additional revenues from the added delivery capacity are anticipated to be $51,000 per year for each of the next 5 years. A driver will cost $36,000 in 2011, with an expected annual salary increase of $3,000 for each year thereafter. The annual operating costs for the truck are estimated to be $2,000 per year. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.990 0.825 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.663 0.636 0.572 0.482 5 0.747 0621 0.567 0.497 0.402 0 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0404 0.327 0.233 9 0.592 0424 0.361 0,284 0.194) 10 0.558 0306 0.322 0.247 0.162 a. Determine the expected annual net cash flows from the delivery truck investment for 2011-2015 Annual Net Cash Flow 2011 2012 2013 0001