Lulu Hypermarket has a pickup truck that it uses to deliver the online orders to their customers. The track at be wither overhaled or replacin company has assembled the following information Purchase cost (new) Remaining book value. Overhaul needed now Annual cash operating costs Salvage value (now) Salvage value (five years from now) old Truck $38,000 New Truck $51,000 $26,000 $25,000 $20,000 $18.500 $15,000 $12,000 $10,000 ck The If the company keeps and overhauls its old delivery trick currently in use, 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 with another truck. The new track would be diesel-operated, resulting in a substantial redaction in anual operating costs, shown above The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 9% discount rate. Use the following tables to determine the appropriate discount factor(s) 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" alterative? 3. Should Lulu Hypermarket keep the old truck or purchase the new one? Why? EXHIBIT 14B-1 Present Value of $1; Table Summary: Table of present values of S1. Periods are listed in first column: 1-30 and 40. Columns are given for percents from 4 percent to 25 percent