Ginnys Food Service is evaluating whether they should purchase a new freezer for their business or overhaul their existing freezer. A new freezer is selling for $23,000. The annual operating costs on the new freezer would be $6,000. You could sell the old freezer for $8,000 today, and the new freezer would have a salvage value of $4,000 in 5 years.

If Ginny kept the old freezer the overhaul cost would be $5,800, and the annual operating costs on the old freezer would be $10,500. The salvage value on the old freezer in 5 years would be $500.

Assume an interest rate or cost of capital of 7%

Purchase New Freezer
Item	Cash Flow	PVF	Present Value
Purchase Price
Annual Operating Costs
Salvage Value old Freezer
Salvage Value new Freezer
Net Present Value	-	-

Overhaul Old Freezer
Item	Cash Flow	PVF	Present Value
Overhaul Cost
Annual Operating Costs
Salvage Value old Freezer
Net Present Value	-	-

What decision should Ginny make?