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i did everything correctly , but connect says it is wrong i would like to compare thanks a lot Bilboa Freightlines, S.A., of Panama, has

i did everything correctly , but connect says it is wrong

i would like to compare

thanks a lot

image text in transcribed 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: Presen New t Truck Truck 27,00 36,00 Purchase cost new $ $ 0 0 14,00 Remaining book value $ 0 13,00 Overhaul needed now $ 0 14,00 11,50 Annual cash operating costs $ $ 0 0 Salvage value-now $9,000 Salvage value-five years $5,000 $8,000 from now 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 13% discount rate. Click here to view Exhibit 13B-1 and Exhibit 13B-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

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