Bilboa Freightlines, 5A. of Panama has a small truck that it uses for local deliveries. The truck is in bad repair and must be either overhauled or replaced with a new truck. The company has assembled the following information (Panama uses the US. dollar as its currency): Present New Truck Truck Purchase cost new $43,000 $59,500 Remaining book value 28,000 Overhaul needed now 11,500 Annual cash operating costs 14,500 11,500 Salvage value now 16,500 - Salvage value eight years from now 3,800 6,800 If the company keeps and overhauls its present delivery truck, then the truck will be usable for eight more years. If a new truck is purchased, it will be used for eight years, after which it will be traded in on another truck. The new truck would be dieselfuelled, resulting in a substantial reduction in annual operating costs, as shown above. The company computes depreciation on a straightline basis. All investment projects are evaluated using a 16% discount rates Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Determine the present value of net cash flows using the totalcost approach. (Negative amounts should be indicated with a minus sign. Round discount factor(s) to 3 decimal place.) Purchase the new truck 1-b. Should Bilboa Freightlines keep the old truck or purchase the new one? Purchase the new truck Keep the old truck 2. Using the incrementalcost approach, determine the net present value in favor of (or against) purchasing the new truck? (Negative amounts should be indicated with a minus sign. Round discount factor(s) to 3 decimal place.) _:|