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 Present Truck New Truck Purchase cost new Remaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from novw $36,000 48,000 $ 23,000 $ 22,000 $ 17,500 16,000 12,000 $15,000 6,000 If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a nevw 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 9% discount rate