Rundso Delivery is a small compary thst tansports business pockoes between New York and Chicago. it operates o fiem of umat Vans that moves packages to and from a central depof within each ciy and uses a commor carrier to delver the packages between the depots in the two cites. Runde Delliery recently acquired approvimately $69 millon of cash cistal fiom its aweres, and its president. George Hay, is trying to identify the most prontable way to invest these funds. Todd Payne, the company's operasons manoger, believes that the money should be used 10 expand the fleet of city vans at a coet of $690.000. He argues that more vans would enable the compary to expand its services into new markess, thereby increatirg the revenue base. More specificaly. he expects cash inflows to increase by $300000 per yeac. The hdditional vans are excected to hawe an average usefut life of four years and a combined salvage value of $10x,000 Operating the vant wal requice additionsi working capital of $46,000, which will be recovered at the end of the fourth year. In contrast, Oscar Vance, the company's chief accountant, bedeves that the funds showla be used 40 purchase lage tucks to deiver the packages between the depots in the two cities. The conversion process would produce continumg if prowemed in operating savings and reduce cash outflows as follows: The large trucks are expected to cost $770.000 and to have a four-your useful ife and a 580.000 salvage wolse: in adidon to pe: purchase price of the trucks, up-tont training costs are expected to amount to $12.000. Aundle 0 eiviris managerent has established a 12 percent desired rate of retum. (EY of 11 and PYh of SI) (Use appropiate factoe(s) frem the tabies provided Required a.kb. Determine the net present value and present valwe index for each invessnent alternative. (Round yeur intemtediate calculations and final answers to 2 decimat places. Enter your answer in whole dollers and not in millises