Solomon Delivery is a small company that transports business packages between New York and Chicago. it operates a fleet of small vans that moves packages to and from a central depot within each city and uses a common carrier to deliver the packages between the depots in the two cities. Solomon Delivery recently acquired approximately $6.9 million of cash capital from its owners, and its president, George Hay, is trying to identify the most profitable way to invest these funds. Todd Payne, the company's operations managet, belleves that the money should be used to expand the fleet of city vans at a cost of $690,000. He argues that more vans would enable the company to expand its services into new markets, thereby increasing the tevenue base: More specifically, he expects cash inflows to increase by $250,000 per year. The additional vans are expected to have an average useful life of fout years and a comblned salvage value of $106,000. Operating the vans will require additional working capital of $45,000, which will be recovered at the end of the fourth year. In contrast, Oscar Vance, the company's chief accountant, belleves that the funds should be used to purchase large trucks to dellver the packages between the depots in the two citles. The conversion process would produce continuing improvement in operating savings and reduce cash outfiows as follows. The large trucks are expected to cost $770,000 and to have a four-year useful life and a $83,000 salvage value in addition to the purchase price of the trucks, up-front training conts are expected to amount to $16,000. Solomon Dellivery's management has established a 8 percent desired rate of return. (eVoLit and EVA of Sil) (Use nppropriate factor(s) from the tables provided.) Required a.8b. Determine the net present value and ptesent value index for each investment alternative. (Round your intermediate calculations and finol answers to 2 decimal places. Enter your answer in whole dollars and not in millions.) savings and reduce cash outflows as follows. The large trucks are expected to cost $770,000 and to have a four-year useful purchase price of the trucks, up-front training costs are expected to amount to established a 8 percent desired rate of return. (PV of $1 and PVA of $1 ) (Use app Required a.\&b. Determine the net present value and present value index for each investm calculations and final answers to 2 decimal places. Enter your