e Biboa 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: Present Truck New Truck Purchase cost new $ 23,000 $ 29, eee Remaining book value $ 11,000 Overhaul needed now $ 10, eee Annual cash operating costs $ 12,000 $ 8,500 Salvage value-now $ 6,000 Salvage value-five years from now $ 5,000 $5,000 of the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck 15 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 128-1 and Exhibit 12B-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. Required Required 2 Required 3 Required 1 What is th we 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 Required 2 Required 1 Required Required 3 What is the net present value of the purchase the new truck alternative? (Enter negative amount with a minas sign. Round your final answer to the nearest whole dollar amount.) 3 Required 1 Required 2 Required Should Bilboa Freightlines keep the old truck or purchase the new one? Purchase the new truck Keep the old truck