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i got required 1 (51135) but i need help with required 2 and 3. thank you. Problem 13-28 Net Present Value Analysis (LO13-2] Bilboa Freightlines,

i got required 1 (51135) but i need help with required 2 and 3. thank you. image text in transcribed
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Problem 13-28 Net Present Value Analysis (LO13-2] 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: Present Truck New Truck $ 28,000 $ 23,000 $ 10,000 $ 9,000 $ 11,500 5,000 $ 4,000 Purchase cost new heining book value Overhaul needed now Annual cash operating costs 24 8,000 Saavage value-now Salvage value-five years from now $ 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 9% discount rate. Annual cash operating costs Salvage value-now Salvage value-five years from now $ 11,see $ 5,000 $ 4,000 8,e00 $ 4,000 If t 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 9% discount rate. Click here to view Exhibit 138-1 and Exhibit 138-2, 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 truckTalternative? 3. Should Bilboa Freightlines keep the old truck or purchase the new one? 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 1. What is the net present value of the "purchase the new truck" alternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) $ (45,120) x Net present value

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