its telling me my answers are wrong somehwhere just not sure were i went wrong. thanks!
Biboa Freightlines, S.A.. of Panama, has a small truck that It uses for Intracity deliveries. The truck is wom out and must be either overhauled or replaced with a new truck. The company has assembled the following Information: New Track $ 38,000 Purchase cost new Remaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from now Present Truck $ 28,000 $ 15,000 $ 14,000 $ 14,500 $ 10,000 59.000 $ 13,000 $ 12,eee 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? Complete this question by entering your answers in the tabs below. Required 1 Required Required 3 What is the nat present value of the purchase the new truck alternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dolar amount.) Net present value $ 87.211 Billboa Freightlines. SA 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 Truck $38.000 Purchase cost new Remaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from now Present Truck $ 28,000 $ 15,000 $ 14,000 $ 14,50e $ 10,000 $ 9,000 $ 13,000 $ 12,000 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, resuiting 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 138-2. to determine the appropriate discount factors) using tables, Required: 1. What is the net present value of the keep the old truck alternative? 2. What is the not present value of the purchase the new truck" alternative? 3. Should Billboa Freightlines keep the old truck or purchase the new one? Complete this question by entering your answers in the tabs below. Required 1 Required Required What is the net present value 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 30.115 Bilboa Freightlines, S.A., of Panama, has a small truck that It uses for Intracity deliveries. The truck is worn out and must be elther overhauled or replaced with a new truck. The company has assembled the following Information: Purchase cost Renaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from now Present Truck Truck $ 28,000 $ 38,000 $ 15,000 $ 14,000 $ 14,500 $ 13,000 $ 10,000 $9, eee $ 12,000 ence 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 138-1 and Exhibit 138-2. to determine the appropriate discount factors) 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 Reafired Should Biboa Freightlines keep the old truck or purchase the new one? Purchase the new truck Keep the old truck (Required 2
