Johnson Inc. is considering replacing its existing delivery truck with a new one The new truck offers considerable fuel savings. The existing truck could be sold immediately. Information about the existing and new trucks is as follows Existin New $12,000 $15,00 $3,500 $2,50 Original cost nnual operating expenses ccumulated depreciation to date $7,00 urrent salvage value Remaining life Salvage value in 5 vears $2,000 $15,00 5 years 5 vear $0$5,00 nnual depreciation expense and capital cost allowance $1.000 $3.00 Required a. Ignore income tax and time value of money effects. Should Johnson Inc. replace the existing truck with a new one? b. Assume Johnson's discount rate is 10% and income tax rate is 20%. ShouId the company purchase the new truck