Check Figure: NPV $1,112 in favor of overhauling the old truck REQUIREMENTS: Complete the requirements for P12-28 on page 602 of your textbook. Do the Total Cost Approach first then, do an Incremental Cost Approach analysis below your Total Cost Approach. They should both be on the same page. REQUIRED COMPONETS: o Two Logic IF statements MUST be used to label the Decision as being in favor of overhauling the old truck or in favor of purchasing the new truck. One Logic IF for the Total Cost Approach and one Logic IF for the Incremental Cost Approach. This is a required component for this assignment. If you do not complete both Logic IF stmts, you will not receive credit for this assignment. o Excel's PV function must be used to calculate the present value of the cash flows. Do not use the factor tables as is illustrated in the text. A data block and cell referencing is required. There is NO What IF part to this assignment. DATA BLOCK AND ANALYSES FORMATS: You can use the following format illustrated below for your data block page. Data Block Bilboa Freightlines Required Rate of Return Present Truck New Truck Year/ Periods Purchase cost new Overhaul needed now Annual cash operating costs Salvage value now Salvage value five years from now Include the total cost approach analysis and the incremental analysis both on one spreadsheet page. You can use the format illustrated on the following page for your total cost approach analysis: PROBLEM 12-28 Net Present Value Analysis LO12-29 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: Purchase cost (new) Remaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from now Present Truck New Truck $21,000 $30,000 $ 11,500 $ 7,000 $10,000 $6,500 $9,000 $1,000 $4,000 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 16% discount rate