Question Completion Status: QUESTION 1 7 points Saven Budget Food Ltd. is considering a new investment in delivery vans to accommodate the increasing demand for home delivery during the COVID19 restrictions. It plans to buy 5 vans and each van costs $50,000 to get on the road. The vans are anticipated to be depreciated over 5 years to a residual value of $20,000 per van. with the capacity to make more deliveries, Budget Food Ltd. expects an increase in sales for the following year; however, there are running costs associated with using the van (e.g. petrol and maintenance). In addition, the project requires the level of the networking capital (NWC) to be maintained, at 5% of the predicted next year sales, over the project life. Assume Budget Food Ltd. are expecting to terminate this project at the end of year 3 and to sell the vans at the market price at $38,000 each The management department has prepared some information for you to review: o 55,000 (6,000) Sales Running cost Depreciation EBIT Tax 70,000 (4,000) (30,000 36,000 (10,800) 25,200 65,000 (6,000) (30,000) 29,000 (8,700) 20,300 (30,000) 19,000 (5,700) 13,300 NOPAT 25,200 30,000 20,300 30,000 13,300 30,000 (1) NOPAT Depreciation Initial Investment Salvage Value Tax on Gain Change on NWC Net Cash Flow 190,000 (2) (4) (3,500) (3) 500 a) Fill in the missing value highlighted in the cell, round all solutions to the nearest dollar value. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close OO A 4 W P N MacBook Air W E R