Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information: Purchase cost new Present Truck New Truck $ 33,000 $ 42,000 $ 20,000 Remaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from now $ 19,000 $ 16,000 $ 14,500 $ 9,000 $ 8,000 $ 8,000 If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated. resulting in a substantial reduction in annual operating costs, as shown above. The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 6% discount rate. Click here to view Exhibit 128-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using tables. Required: 1. What is the net present value of the "keep the old truck" alternative? 2. What is the net present value of the "purchase the new truck" alternative? 3. Should Bilboa Freightlines keep the old truck or purchase the new one? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the net present value of the "keep the old truck" alternative? (Enter negative amount with a minus sign, Round your final answer to the nearest whole dollar amount.) Net present value Required: 1. What is the net present value of the "keep the old truck" alternative? 2. What is the net present value of the "purchase the new truck" alternative? 3. Should Bilboa Freightlines keep the old truck or purchase the new one? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the net present value of the "purchase the new truck" alternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value Required: 1. What is the net present value of the "keep the old truck" alternative? 2. What is the net present value of the "purchase the new truck" alternative? 3. Should Bilboa Freightlines keep the old truck or purchase the new one? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should Bilboa Freightlines keep the old truck or purchase the new one? OPurchase the new truck OKeep the old truck XHIBIT 128-2 resent Value of an Annuity of $1 in Arrears; 1(1-(1/(1+r)^n)) 8% 9% 10% 11% 12% 13% 0.926 0.917 Periods 4% 5% 6% 7% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.909 0.901 0.893 0885 0.877 0.870 0.862 0.855 0347 0.840 0.833 0326 0820 0.813 0.806 0.800 1.886 1859 1833 1808 1.783 1.759 1.736 1.713 1690 1568 1.647 1.626 1.605 1585 1.566 1547 1528 1.509 1.492 1474 1457 1.440 2.775 2.723 2.673 2.624 2.577 2531 2.457 2444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2074 2042 2011 1981 1952 3.630 3.546 3.465 3387 3312 3.240 3.170 3.102 3037 2914 2914 2.855 2.798 2.743 2.690 2.639 2.589 2540 2.494 2448 2.404 2362 4452 4329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2926 2864 2.803 2.745 2.689 5.242 5.076 4917 4.767 4.623 4.486 4355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3498 3.410 3.325 3.245 3.167 3.092 3.020 2.951 6.002 5.786 5582 5.389 5206 5033 4368 4.712 4.564 4.423 4.288 4.160 4039 3.922 3812 3.706 3.605 3508 3.416 3327 3.242 3.161 6.733 6.463 6210 5971 5.747 5535 5335 5.146 4.968 4.799 4.639 4,487 4344 4207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3329 7435 7.108 6802 6515 6.247 5995 5.759 5.537 5.328 5.132 4946 4.772 4.607 4.451 4.303 4.163 4031 3.905 3.756 3.673 3.566 3.463 8.111 7.722 7360 7024 6.710 6418 6145 5.889 5.650 5.426 5.216 5019 4833 4.659 4.494 4339 4.192 4.054 3.923 3.799 3.682 3571 8.760 8.306 7887 7499 7.139 6.805 6.495 6.207 5938 5.687 5453 5.234 5.029 4.836 4.656 4.486 4327 4.177 4.035 3.902 3.776 3.656 9.385 8.863 8384 7.943 7536 7.161 6.814 6.492 6.194 5918 5660 5421 5.197 4988 4.793 4611 4.439 4.278 4.127 3.985 3.851 3.725 9.986 9.394 8853 8.358 7.904 7487 7.103 6.750 6424 6.122 5842 5.583 5.342 5318 4.910 4715 4.533 4.362 4.203 4053 3912 3.780 10.563 9.899 9295 8.745 8.244 7.786 7367 6.982 6628 6.302 6002 5.724 5465 5.229 5008 4.802 4.611 4432 4.265 4.106 3.962 3.824 11.118 10.380 9.712 9.108 8.359 8.061 7.606 7.191 6.811 6.462 6.142 5547 5575 5.324 5.092 4876 4.675 4489 4315 4.153 4,001 3.859 11.652 10.838 10.106 9.447 8851 8.313 7824 7379 6974 6.604 6.265 5954 5.668 5405 5.162 4935 4.730 4.556 4.357 4.189 4.035 3.887 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7549 7.120 6.729 6.373 6047 5349 5.475 5.222 4.990 4.775 4576 4391 4219 4059 3910 12.659 11,690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.540 6.467 6.128 5818 5534 5.273 5033 4.812 4.608 4.419 4.243 4.080 3.928 13.134 12.085 11.158 10.336 9.604 8.950 5.365 7839 7366 6938 6.550 6.198 5877 5.584 5.316 5070 4843 4635 4.442 4.263 4.097 3942 13.390 12.462 11470 10.394 9.818 9.129 8514 7963 7469 7025 6623 6259 5929 5.628 5353 5301 4870 4.667 4460 4279 4.110 3.954 14.029 12.821 11.764 10.836 10.017 9.292 5.649 8.075 7562 7.302 6687 6312 5973 5665 5384 5327 4891 4.675 4476 4292 4.121 3963 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7.170 6.743 6359 6011 5.696 5.410 5.349 4.909 4.690 4.488 4.302 4.130 3970 14.857 13.489 12.303 11.272 10.371 9.580 8883 7.718 7.230 6.792 6.399 6044 5.723 5432 5.167 4.925 4.703 4499 4311 4.137 | 3976 15.247 13,799 12.550 11.469 10.529 9.707 8965 7,784 7.283 6835 6.434 6.073 5.746 5451 5.182 4937 4.713 4.507 4315 4.143 3.981 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8422 7843 7330 6873 6.464 6097 5.266 5.467 5.195 4.945 4.721 4514 4.323 4.147 3985 15.983 14.375 13.003 11.826 10.810 9929 9.161 8488 7.896 7372 6906 6.491 6118 5.783 5.480 5206 4.956 4.728 4.520 4.328 4.151 3.988 8348 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7943 7409 6.935 6314 6.136 5.798 5492 5215 4964 4.734 4524 4332 4.154 3990 3602 7984 7441 6.961 6534 6.152 5810 5.502 5.223 4.970 4.739 4.528 4335 4.157 16.663 14.898 13.406 12.137 11.051 10.116 9307 3992 6.983 6.551 6.166 5.820 5510 5229 4.975 4.745 4531 4.337 4,159 3.994 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7470 8.694 17.292 15.372 13.765 12.409 11.258 10.274 9427 8055 3995 7496 7.003 6.566 6.177 5829 5517 5235 4979 4.346 4534 4.339 4.160 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 8.266 8348 EXHIBIT 128-1 Present Value of $1; ((1+r))" Periods 4% 1 2 3 4 5 6 5% 0.962 0.952 0.943 0.925 0.907 0.890 0.889 0.864 0.840 0.855 0.823 0.792 0.822 0.784 0.747 0.790 0.746 0.705 6% 7% 8% 9% 13% 14% 0.935 7 0.760 0.711 0.665 8 0.731 0.677 0.627 9 10 11 12 0.703 0.645 0.592 0.676 0.614 0.558 0.650 0.585 0.527 0.625 0.557 0.497 13 0.601 0.530 0.469 0415 0.368 14 15 16 17 18 19 0.494 0416 0.350 0.475 0.396 0.331 20 21 0439 0.359 0.294 22 0.422 0.342 0.278 23 0.406 0.326 0.262 24 0.390 0.310 0.247 0.082 0.074 25 0.375 0.295 0.233 26 0.361 0.281 0.220 27 0.347 0.268 0.207 28 0.3331 29 0.321 0.255 0.243 10% 11% 12% 15% 16% 17% 20% 21% 22% 23% 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0,731 0.718 0.706 0.694 0.683 0.672 0,661 0.650 0.640 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.312 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0482 0.467 0.451 0437 0.423 0410 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0419 0.402 0386 0.370 0.355 0.341 0328 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0303 0.289 0.275 0.262 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.544 0.500 0.460 0.424 0.391 0.361 0,333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.508 0.463 0.422 0.386 0.352 0.322 0.295) 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.056 0444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 | 0.092 0.083 0.076 0.069 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.555 0481 0417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 0.513 0.436 0.371 0317 0270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.012 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.197 0.158 0.126 0.102 0.066 0.053 0.043 0.028 0.035 0.023 0.019 0015 0.013 0.010 0.008 0.007 0.006 0.005 0.184 0.146 0.116 0.092 0.059 0.047 0.038) 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.053 0.172 0.135 0.106 0.084 0.066 0.033 0.042 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.125 0.161 0.009 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.007 0.006 0.005 0.004 0.003 0.002 0.150 0.116 0.090 0.069 0.005 0.196 0.054 0.008 0.042 0.006. 0.033 0.026 0.020 0.016 0.012 0.010 0.004 0.003 0.002 0.002 0.037 0.008 0.006 0.005 0.082 0.063 0.048 0.185 0.141 0.107 0.004 0.003 0.002 0.002 0.002 0.029 0.022 0.017 0.014 0.011 0000076 0017 0014 0.033 0.0276 0.00010015 0012 0.000 0.00 posto.co Loco nosa 18% 19% 24% 25% 0.806 0.800