Kimmel, Accounting, 6e Problem 24-4A (Part Level Submission) Jane's Auto Care is considering the purchase of a new tow truck. The garage doesn't currently have a tow truck, and the $60,000 price tag for a new truck would represent a major expenditure. Jane Austen, owner of the garage, has compiled the estimates shown below in trying to determine whether the tow truck should be purchased. 60,000 8 years nitial cost Estimated useful life Net annual cash flows frorm towing $7,990 Overhaul costs end of year 4) Salvage value $5,990 $12,000 ane's good friend, Rick Ryan, stopped by. He is trying to convince Jane that the tow truck will have other benefits that Jane hasn't even considered. First, he says, cars that need towing need to be fixed. Thus, when Jane tows them to her facility, her repair revenues will Increase. Second, he notes that the tow truck could have a plow mounted on It, thus saving Jane the cost of plowing her parking lot. (Rick will give her a used plow blade for free if Jane wil plow Rick's driveway) Third, he notes that the truck will generate goodwlll; people who are rescued by Jane's tow truck will feel grateful and might be more inclined to use her service station in the future or buy gas there. Fourth, the tow truck wil have "Jane's Auto Care" on its doors, hood, and back tailgate-a form of free advertising wherever the to truck goes. Rick estimates that, at a minimum, these benefits would be worth the followina. $3,010 750 970 740 Additional annual net cash flows from repair work Annual savings from plowing Additional annual net cash flows from custorner goadwill Additional annual net cash flows resulting from free advertising The company's cost of capital is g%. Calculate the net present value ignoring the addit na b nafits des nned hy Rick. If the net present win negative use en hera ne atre sign preceding the number eg 45 or parentheses 45 Rolln answer to decima aces, e g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value s should the tow truck be purchased? The tow truck ba purchased. Attempts: 0 of 5 used SAVE FOR LATER The parts of this question must ba compietad in ardar. This part wwb avaiabie whan you compiete the part ahovn