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: New Truck $ 29,000 Purchase cost new Remaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from now Present Truck $ 23,eee $ 11,000 $ 10,000 $ 12,000 $ 6,000 $ 5,eee $ 8, see $ 5,800 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 12% discount rate Click here to view Exhibit 148.1 and Exhibit 148-2. 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? 2048TS-1 Pelant Value of St 20 255 Periods 4 50 8 9 102 19 12 15 55 163 17 18 193 200 213 235 1 0.962 0.952 0943 0.935 0926 0.912 0.909 0.901 0893 0805 09770870 0362 0.855 0.847 0.540 0.33 0.826 0820 0.80 0.306 0800 2 0925 0907 0890 0.873 0.857 0.842 0826 0012 0.797 0.783 0.709 0756 0743 0731 0.718 0706 0.694 0633 0.672 0.661 0.650 0.640 3 0.889 0364 0840 0.816 0.794 0772 0751 0731 07120093 0.075 0658 0.541 0624 0609 0593 0.579 0564 0.551 0537 0.524 0512 4 0855 023 0792 0763 0.735 0700 0583 0.659 0636 0.61305920572 0552 0534 0.516 0499 0482 046704510437 0423 0410 5 0022 0734 077 0.70 0681 0.650 0624 0.593 0567 0.543 0.519 0497 0.475 0.456 047 0.419 0.402 0.385 0770 0.355 0.31 0.328 6 07900346 0.705 0.066 0630 0.596 0.564 055 0.507 0.4300456 0.432 0.410 0.390 0.370 0352 0.335 0.3190303 0219 0225 0.262 7 07800711 0.665 0.623 058 057 050 04820452 0.425 0.000 0376 0.354 0.330 0.31 0.296 0279 0.263 0249 0.235 0.222 0.210 8 0731 0677 0627 0582 0.500 0.502 04670434 0.404 0.376 0.351 0.32 0.305 0.285 0266 0249 0.233 0.21 0.204 0.191 01790560 9 07030645 0592 054 0.500 0.450 0424 0.391 0.361 0.3 03080284 026 0243 0225 0209 0.19401300167 0155 0544 0134 30 06710810358 0505 0.463 0.422 036 0.352 0.322 0295 0270 0247 0227 0200 0191 0176 OM20.90107 0126 0115 0.107 V 0.650 055 05 0.475 0.429 0.388 0.350 0.37 0.287 0261 0237 075 0195087805620548 005013 012 09030094 0000 12 0625 0552 0497 444 0.397 0.756 0319 0206 0257 021 02000187 0160 0152 0237 0124 012 010200820093 00260059 0.001 0.530 0.400 0.45 0.368 0.328 0290 -0.258 0229 0204 0.12 090 0545 010 011601040083 084 0.07500GB 00610055 16 0:57 SO 042 0388 0.340 0.299 0.263 0232 0205 0 0.15001 0125 0:11 0,099 0.008 007 0060 0062 0.055 0049 0044 550431041032015 02750229 0209 01 090 0001230108 0.0960040024 0.065 00570051 00500800035 054 053 0.794 03390292 0252 0218 00153 0547 01230107 008 0.0810070002 0.054 000 0002 0.036 0032002 0500436 037 090 0270 023 019603700546 005 0.08 0.033 0000 0000 0000 0.052 0005 0.0090034 0030 0.025 0.023 040.440350 0.250 0.250 020 0190 0153 01300m 00950081 006 005 0051004 003 001200220004 0.021 0.00 00356 0331 027 0212 619404 0050 0098 000 000 0000 0057 000 0037 0001 0027 0023 000 000 001 20 0456 037 0912023020501 0500 01240104 007 0073 00010051 000 0037 00 0.020 00320019000 000 0000359 0294 0212 00154 005 0m2 0000 000064 005 004 0032 0.001 0.026 0002 00000000001 0220342762200154015003 0101 0000 000 000 0.06 0.06 0.033 0000 0026 0.002 0.00 0.015 000 0.01 0.000000 010602002020211010000 010 0000074 0.060 0049 0.0000000Z7 0022 0.00050012 000 000 000 0005 20 0 0.0 0.0 0.9070150126 002 002 0000 0000 000 000 000 0023 004 005 000 000 000 000 0006 0.005 01710295 020045 om 000200005 000 000 0000 0024 0.020 ON 00000000000002 0.000 0.000000 30 0,301 02 0220 01120150106 0004 0.00093 002 003 0025 0.021 000 000 000 000 000 000 000 000 23 0441 2010 2009 0125 00000000000000000290023000000000000000000000000000000 20 030255016050 Q10 0.00 0.00 0.54 0.00 0.00 0.026 0020 000 000 000 0000 000 000 000 0.00 0.002 0.003 29 0 000 OS 0107 0002 0.002 003 0037 0023 02 000 000 000 0000 000 000 000 0002 000) 030002304 000025005704 0000 0000 000 000 0000 000 000 000 000 000 000 000 0.0000 0000 000022 000 000 000 000 000 000 0002 0.00 0.00 0.00 0.000 0.000 0.00000000000 Dort sun-2 prosent Value of an Armutiny of $1 In Arroers: [-] Periods 5% 65 7 8% 94 90 13 19 15% 17 19% 20% 21% 225 27 25% 1 096209520943 0.935 0926 0917 0909090108900885 0.877 0.870 0.862 0055 0.347 0.840 ORES 0326 01:20 08130805 0800 2 1888 1859 1833 1800 1780 159 1736 1700 1890 1663 1647 1626 16051585 156 1547 1529 1509 1492 104 457 410 3 2775 2723 2673 2624 2.577 2531 2487 2444 2402 2361 2322 2283 2246 2210 2.174 2.310 2106 2074 2042 2011 1981 1952 4 3630 250 3405 3387 3.312 3.240 3370 3102 3037 29742.914 2055 2798 27032690 26392599 2540 2494 243 2404 2362 5 4452 4329 4212 400 3993 1990 3.791 1690 3605 3.50 341333523274 3199 31273058 2991 2926 2964 2803 27452699 5 5202 5.070 490 4623 40 4355 4231 4.11 3.990 3.889 3784 365 3509 3.498 3410 3.326 325 3357 3.092 3020 2951 7 60025706 55825395206 5.000 4.860 470 4564 4423 4200 4300 4039 2922 3812 37063605 2500 341 33271242 3.561 6733 646 6.210 5.97 5742 5.535 5.335 5.346 4.968 47994639 447 434 4207 4078 1954 3837 3.726 36195113421 3329 705 7100 6.100 6.515 620 5.995 57505537 5320 5132 4946477246074451 4300 4.100 4031 905 3798 3.6733566 2483 10 7722 7.300 7024 0.750 6.478 6445 5.909 5650 5.426 5216 5019 4833 4659 4494 43394192 40543923 3.7903682 3571 75013007887 2499 209 60056.405 6.207 5.938 5687 5.453 5234 5.029 430 46564436 437 4177 2005 1902 3775 1656 2 955 806) 34 790 75352901 6.944492 794 591 56805415997 49790611 409 427 47 1905 3151 3725 0906.394185335879047437 2100 6.750 642460225.042 5.583 5.342 5118 4910415334322034053 3912 270 105693.599 9.29 1745 3244 7700 7357 0982 86286302 0.002 5724 5.085.229 5008424 202 265 410839023824 5 103802 9900 35591061 78067791 60116462 632 5.547 5575 5324 5.092 4.075 467 409 415 4153 400 350 10 1852 1031 10.100 9 3851 30 2021 2370 6974 6,604 6.265 59545660 5.405 5.562 4900 47304510074109 200330 2611234947797 522 2542 8.92275497120 6.729 617 0.0475749 5.0 5222 990 77 4520 4.91 42194019 1910 120811000 10821100359372 756 2011102 7.250 6540 6.407 6120 5.00 5.534 5272S000 4600 419 420 40003921 03412005158 10.3369004 3657887066908 6.550 6190 557 5534 53650704304544424204097 10 20 90 122 100 10504 9129 1514274007025 662 6.259 5920 5.621 5353 5101 40465702794 205 21 021264 10.008 009292 864 807 2562 7102 6.607 6312 5.93 65 534 5127 301467504293 390 22 12042 2010 372 610 7645700 670 359 son 55.10540 4900 46000 1970 20 MIS 01273112720 9500 700 7710 72306792 6.00 5723542510 90547032499 24 40 2900 15.241 79250 140 10529 970 5 34 7704 72806005 6.04 OT 5745 512 4900 4507 30 1583210 12.5 1856 906759 077 4727507230675464 0975766 555 44.721 541 20 24 2003 26 9929 9401 4020222 6.906 6490118 570 5.400 5200455147704520 434101 22 100 1820 602 30351002793357940409 935 654 600 5.7549252545043154 2000 03160500 11050 907 602 704 741 254 255502 970 47570 157 799 2 05 1.1 1150 201608022 100 651 65000 551052294904544501004 0292512403 104 104 105 7400 700300 XT 50 5235 190 09710717 7111744 704 705 660 mm 55474760454430