Safari File Edit View History Bookmarks Window Help Ch 11 Must Question 8 (of 10) 6.00 points The Diamond Freight Company has been offered a seven-year contract to haul munitons for the government. Because this contract would represent new business, the company would have to several new heavy-duty trucks at a cost of $350,000 if the contract were accepted. Other data relating to the contract follow: Annual net cash receipts (before taxes from the contract $105,000 Salvage value of the trucks at of the contract $18,000 he trucks w have a useful lie of seven years. To raise money to assist in the purchase of the new trucks, a 16% on allequipment The tax rate is 30% For tax purposes. the company computes depreciation d assuming zero salvage value and using straight-line of the trucks The new would be depreciated over the oven Required: (a) Compute the net present value of this investment opportunity. (Round to the nearest dollar amount. sign your Net present value (b) Compute the internal rate of investment opportunity. (Round to two decimal places. the in your response.) Intemal rate of return