Nu Logistics is planning to expand its fleet of trucks. The initial investment for 10 new trucks is $1,200,000. The expected life of the trucks is 7 years, with no salvage value. The trucks are expected to generate additional annual revenue of $350,000, with annual operating costs of $180,000. The company’s cost of capital is 8%.

Requirement: Calculate the NPV, payback period, and IRR for the investment. Should Nu Logistics proceed with the expansion? Provide a detailed analysis based on your calculations.

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