ASSIGNMENT RESOURCES Problem 24-4A (Part Level Submission) Jane's Auto Care is considering the purchase of a new tow truck. The garage doesnt currently have a tow truck, and the $59,960 price tag for a new truck would represent a major expenditure. Jane Austen, owner of the garage, has compiled the estimates shown below in trying to determine whether the tow truck should be purchased. Expand Your ritical Ihinking 74-2 Initial cast Estimated useful life $59,960 8 years $7,980 $5,960 $12,000 Net annual cash flows from towing Overnaul costs (end of year 4) Salvaga velue Problem 21-1A (P Jane's good friend, Rick Ryan, stopped by. He is trying to convince Jane that the tow truck will have other benefits that Jane hasn't even considered. First, he says, cars that need towing need to be fixed, Thus, when Jane tows them to her facility, her repair revenues will increase. Second, he notes that the tow truck could have plow mounted on it, thus saving 2ane the cost of plowing her paring lot. (Rick will give her a used plow blade for freeJane will plow Rick's driveway. Third he notes that t e truck will generate goodwill; people who are rescued by Jane's tow truck will feel grateful and might be more inclined to use her service station in the future or buy gas there. Fourth, the tow truck wll have "Jane's Auto Care" on its doors, hood, and back tailgate-a form of free advertising wheraver the tow truck goes, Rick estimates that, at a minimum, these benefits would be worth the following, Addltional annual net cash flows from repalr work Annual savings from plowing $2,990 7S0 1,010 760 Addltional annual net cash flows from customer "goodw Additional annual net cash fiows resulting from free advertising The company's cost of capital is 9%. Your answer is partially correct. Try again. Calculate the net present value, Ignoring the additional benefits described by Rick. (If the net present value Is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer to o decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Ne t present value Should the tow truck be purchased? should not The tow truck be purchased. Click if you would like to Show Work for this question: Open Show Work