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please help me answer the following question completely Phat Prerent Value Method for a Service Company residuat value of 57.000 at the end of flve
please help me answer the following question completely Phat Prerent Value Method for a Service Company residuat value of 57.000 at the end of flve years. The expected additional revenves from the added delivery cepacity are anticipated to be $64,000 per year for esch of the eext Fve years. A driver will cost 945,000 in 20Y1, with an expected annusl salary increase of 14,000 for each year thereaften. The snnual ogorating coste for the truch are estimatad to be $2,000 per yes. a. Determine the expected annual net cash flows from the delivery buck investmant for 20y1-20ys. a. Determine the expected annual net cash. Bow from the delivery truck invettment for 20y120rs. b. Compute the net present valie of the investment, astuming that the minimum desired rate of return is 203 . Use the table of the pretent verue of st prasanted obove. When required, round to the nearest dollar. If required, ate the minus aign to isdicate a negative nat present, value. C. Is the addibnal thuck a good investment bated on your analytis? V. because the net present value in Fhating - cheruasinis. 4. For each yest sutbract the driver salaries and spersting coits from the revenues. For 20 rs only, add the residual value. cocal peesent value of the net cash flew. c. Which it mere fovernbie - a positive net present value or a negative net present value
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