Mary's Auto Care is considering the purchase of a new tow truck. The garage doesn't currently have a tow truck, and the $59,950 price tag for a new truck would represent a major expenditure. Mary Smith, owner of the garage. has compiled the following estimates in trying to determine whether the tow truck should be purchased. Initial cost $59.950 Estimated useful life 8 years Net annual cash flows from towing $7.950 Overhaul costs (end of year 4) $5.950 Salvage value $11,990 Mary's good friend, James Johnson, stopped by. He is trying to convince Mary that the tow truck will have other benefits that Mary hasn't even considered. First, he says, cars that need towing need to be fixed. Thus, when Mary 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. (James will give her a used plow blade for free if Mary will plow James's driveway.) Third, he notes that the truck will generate goodwill; people who are rescued by Mary'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 will have "Mary's Auto Care" on its doors, hood, and back tailgate-a form of free advertising wherever the tow truck goes. James estimates that, at a minimum, these benefits would be worth the following. Additional annual net cash flows from repair work $2,990 Annual savings from plowing 740 Additional annual net cash flows from customer "goodwill" 950 Additional annual net cash flows resulting from free advertising 740 The company's cost of capital is 9%. Click here to view PV table. (a) V Your answer is correct. Calculate the net present value, ignoring the additional benefits described by James. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value $ -14,145 Should the tow truck be purchased? The tow truck should not be purchased.(b) Calculate the net present value, incorporating the additional benefits suggested by James. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value $ Should the tow truck be purchased? The tow truck be purchased