Bilboa Freightlines, S$.$ A$,$ of Panama, uses a truck for intracity deliveries that has worn out and must be overhauled or replaced. The company assembled the following information:

If the company overhauls its present delivery truck, then it will be usable for five more years. If a new truck is purchased, it will be used for five years and then traded in for another truck. The new truck would be diesel$-$operated, resulting in lower annual operating costs, as shown above

The company computes depreciation on a straight$-$line basis and uses a $13\%$ discount rate.

Click here to view and Exhibit $148-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

What is the net present value of the "keep the old truck" alternative?

What is the net present value of the "purchase the new truck" alternative?

Should Bilboa Freightlines keep the old truck or purchase the new one?