Bilboa Freightlines, SA, 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 $ 8,000 Present Purchase cost new Truck New Truck $ 27,000 $36,000 Remaining book value $ 14,000 Overhaul needed now $ 13,000 Annual cash operating costs $ 14,000 $ 11,500 Salvage value-now $ 9,000 Salvage value-five years from now $ 5,000 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 ated using a 13% discount rate Click here to view Exhibit 148-1 and Exhibit 14B-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. TIS Present Value of S1, 1(14) Periods 45 595 69 74 346 99 10% 1 0.06209520913 1246 0935 002000120.9090901090155 135 143 165 1796 18% 194204214 29 139 2016 2 255 5377000 36000 340 0.833 08:26 082003110806 0 100 0.9250.000 890 0.875 08570842026 0.8120.1970.701000756 0310.7180.705 06830020061 060 0648 3 0389 08640340 100 704 0.77307510731071200 4 08550823 0.1920.76307350.7080610650 0.03606130590372035200316 0,499 420.467 0.45107010 0.075 000 100 0000 0505795640.551 03370526512 5 0.22 0.7840747 0.71 0.681 0.650 0.621 050 0.567 03490510049700456 024170419 0440203160300-13503 6 0.790016 0.705 0606 061005000564053505070/48007456 3OTO 000037003520335039030028920275 0.02 7 0.7600.11 0.665 0.623 0.58305470.51304052 10:4350.40003760354033501002900279 0.26 0249 0.2350 8 0.731067 0532 0.583 0.540 0.502 0467044040403760331 0322000215 0.160.24901170211 0.204019110.19 OTOY O1000620925405000460 0.4240391 0361 03330,3010234020102650225 10 0:209 09.10.2015 10:25 06760 614 OSS 001 0463 0.422 09336 0352 0.122 0.2950.2700.2470.220.2010 191017601670.549 0.17 0.13 0.10 0.107 TI 0650 0.5850 527 0.4750430 018 0350031702870 261 0202150198 01620140.135 0.123 20.10 0094016 12 06290.557 0:497 0044 0.392 0.3360319 0.286 0257 02310201120122012010112 0.1020.09200 00000 13 0.601 0.530104409 0.415036810326 0.190 02510329020101120163 0.125 130176 0 1040093 0.010007500 OD 0055 14 0.572 0.505 0442 01 010 200 0263 020.30500 1600 1410.13 0.11 0.099000009005200350099 000 13 0.555 0.451 0417 0.362 0315 0.275 0339 0 2090 1800 100 100 123 0101009 0.0004 0.06 0057 005004505 16 0.534 0.45 0304 0190292 0.22 0.218 0.18 0.103 0.14100 107009000071006200550047 0041 0036000011 17 0.100603710317 0.2700 2310 198 0.1700 146 0.125 0 108 009 0.069 1 0.0000032 0.045 000 0.034 0:0106 0023 15 04940416 1 03500.296 0.350 0212 0.100.150.13001110095 0.081 09.05900510044100120028000021 19 0.475 0.39603310377 0.23 0.194 0.160.13890.116 0098 0.080070003000000307 0.02706010 DOT 001 20 0450 0.77 0.312 032582150175 0.7490 1240 1040087 0.07300810051 0.000371 0.0003600020019 DODOT 001 21 0410 0359 02034201900.1540.1350 1120.093 007700510033 004 003 0.031030606320018001 0.013 OCO 01540 150 0.123 TO 0.42200275 0015 0.0130011 0000 0.007 0.08 0.008 0.056 0.04000389012002600210018 0049 0.00 0.035 0.0270092 0.015001000000000 0.40602603620211 0.1700.138 0 112009100740.000 0000-00001 0.01 0.010.08 0.0000000001 24 0390 07100247197 0 1550 1260 1020.0% 0.06600510.0430035 0.03 DOJO 0024020060011 000 000 0.007000500050.000 25 0.375 0.293023301840146 0.116 00920070039 0067 0.038 OOD 000 0026 0.021 0.0170141001100000000000000000000 26 0 1350 1060084 0.0660053 0.361 0251 02200172 0014 0.010009 0.007 0.0000000000000 27 02683020701610135 0098 00750050 0704700370030 TOODTA 28 0.33 0255 0.160.1500 1160090006010054 00421 0.03 0.025 0.0200.01610012 0.000000-0000000000000002DB 0096 0.0001410080006050000000000000000 06486057 19 0321 023432018 0.141 0.07 0.082000 0036002000150012000900700030064 0.00 0.00 0.00 0.00 0.00 30 0.10 1740.11 0.099700150057004 0.033 40 0 20 0.14 0.007 0.067 070460002 0.002 0.015 0.00 0.00 0.00 0.00 0.003 0.000 0.00 DO 0.00 0.00 0.000 0.000000DE09 08 HAZE Add ENS OBOB SUM 30 23 DODIET SECARLSBEREIOS 8 0 MEEGENESS OSS DOBSONS BROEDERSEBZE 0001 NOSALTRES DES RESSO S60 TOT OSLO BEST LOSS SOT KIRILE LA 39 1950 1950 WEGGOTTO LORETT 599 01 30 TRENDS BD LOOB THOSE 91 47 WOOD 93 BOERERAT SEDE ELETS 2009 58. DESETOGODERED TO SE TOP SS02EDY SVETR HOBB PLOTHER POSTED ON OBSERON EL OSCI GRATISSER BALLERIES POOR ISOLE COLLEGE ECO 10! LA TERRESTRE 2013 AGOSTO DE REISOLE TE O DESTRON 50 ROVER LES DOSE 98 LLL HOS DOSSO DO SUL 01 02 STER ORDER BY DIE 1 LOS WCF 061 ROOSE O 0017 IT SILVERO EOS 1950 DO BOB ESTE GIRLS DE LOS MENOS 90 1991 SE BOT WEITEREGAS COO CONDOR CONDO UAB ETILDES DE SEGURAS SUDARO CON CLOSED STORES VOLCOME 19 CH ISTOCROSS ROSESSION OCH DET ESTE BOLD SOS MEDICO GSTIDER SOLO TIL EILE BOLT ESTOSTERO JAL 3006 SHOP POSETIT WE LAT 0 TELEFONE EL BEBERRELDES DELS COMER DEVE DOO LORD SI SI ! CMIDDEL Sie 10 11 10 16 1 159 Per