Volvit Carriers has determined that a new specialised delivery truck needs to be purchased. The truck will generate a positive net present value NPV of R480 000, calculated using the companys WACC of 20%. The truck can be leased from the manufacturer. The lease agreement requires 5 annual payments of R360 000, with the first payment due on the delivery of the vehicle. The truck can also be purchased at a cost of R2 million, inclusive of a 4 year maintenance contract with the manufacturer. The R2 million can be borrowed at an after tax rate of 12% per annum. The loan would be secured against the truck and would be amortised over the useful economic life of the vehicle. The loan payments for each of the first three years are R732 567 payable at the end of each year. The loan payment for year 4 amounts to R725 637. The vehicle can be depreciated straight-line over the same period and will have a zero market value at the end of 4 years. Interest payments included in the year end loan payments for the respective four years are R343 000 R276 189 R197 920 and R106 229. Assume a current corporate tax rate of 30%. Round off final answers to the nearest whole number. Required: 4.1. Determine the after-tax cash flows and the net present value of the cash outflows under each alternative. 4.2. Briefly motivate which alternative should be recommended.