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Hiboa Freighthines, SA, of Panarna, has a small truck that it uses for intracity delivenes. The inuck is worn out inv must be echer overhated

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Hiboa Freighthines, SA, of Panarna, has a small truck that it uses for intracity delivenes. The inuck is worn out inv must be echer overhated of replaced with a new truck. The company has assembled the following information If the comparn keeps and overhauls its present defivery truck, Dhen the truck will be usable for five more years. If a new truck is purchased, it wil 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 is discount rate Click here to view Exhibit. 78-1 and Exhibit 78-2, to determine the appropriate discount factor(5) 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 Blboa Freightlines keep the old truck or purchase the new one? Complete this question by entering your answers in the tabs below. What is the net present value of the "keep the old truck" alternative? (Enter negative amount with a minus sign, Round your resulting in a-substantisl reduction in anemal opertating costs, as shown atsorve. The company computes depreciation on a straight-ire banis. Ali irvestrnent projecth are evaluiled using a texk, discours tate. Click here to view Exhibit 7B-1 and Exbibit 78 2 to determine the approprite discount factor(s) using taties Required: 1. What is the net presecnt value of the "keyep the old truck" alternative? 2. What is the net present value of the "purchase the new truck" altemative? 3. Should Bilboa Freightines keep the old truck or purchase the new one? Required: 1. What is the net present value of the keep the old truck alternative? 1. What is the net present value of the keep the old truck" abernatre? 2. What is the net peresent value of the "purchase the new truck" allernative? 3. Should Biboa Freightines kecp the old truck of purchase the new one? Click here to view Exhibit 781 and Exhibit 782 , to determine the approprate disconant factor(v) uning taties Required: 1. What is the net present value of the "keep the old truck" aliernative? 2. What is the net present value of the "purchase the new truck ahternative? 3. Should Biboa Freightines keep the old truck or purchase the new one? Should Bulboa Frelghtlines koop the old truck or purchase the new one

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