The William Company has been offered a seven year contract to haul iron ore. Since this contract would represent new business, the company would have to purchase new trucks costing a total of $

$3$

$5$

$0$

$,$

$0$

$0$

$0$

$$if the contract is accepted. Other data relating to the contract:

Net annual cash receipts

$($

before taxes

$)$

$$from the contract Cost to replace the truck motors in four years

Salvage value of the trucks at the end of the contract

$

$1$

$0$

$5$

$,$

$0$

$0$

$0$

$4$

$5$

$,$

$0$

$0$

$0$

$1$

$8$

$,$

$0$

$0$

$0$

With the motors being replaced after four years, the trucks will have a useful life of seven years. To raise money to help purchase the new trucks, the company will sell several old, fully depreciated trucks for a total selling price of $

$1$

$6$

$,$

$0$

$0$

$0$

$.$

$$The company uses MACRS to compute depreciation for tax purposes and requires a

$1$

$6$

$\%$

$$after

$-$

tax return on all equipment purchases. The tax rate is

$3$

$0$

$\%$

$.$

$$The trucks would be in the MACRS five

$-$

year property class.

REQUIRED:

$1$

$.$

$$Compute the net present value of this investment opportunity. Round all dollar amounts to the nearest whole dollar.

$2$

$.$

$$Would you recommend that the contract be accepted? Why or Why not? please fill it in the table form thank you!