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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

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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 15 Present Truck Purchase coste $ 35,00 3.45, Hemsining book value $ 22,00 overhaul needed now $ 23,00 Annual cash operating costs 5 17.000 Salvage value now $ 10.000 Salvage value five years from now $9.000 il 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 10% discount rate Click here to view Exhibit 148-1 and Exhibit 14B2. 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. Complete this question by entering your answers in the tabs below. Required: 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the not 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should Bilboa Freightlines koop the old truck or purchase the new one? Purchase the new truck Keep the old truck

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