Bilbon 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 Remaining book value Overhaut needed now Annual cash operating costs Salvage value-now Salvage value-five years from now Present New Truck Truck $36,000 $46,800 $ 26,000 $ 25, eee $ 19,000 $ 17,500 $ 10,000 $ 12,000 $11,000 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 10% discount rate. Click here to view Exhibit 7B-1 and Exhibit 7B-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