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Please answer this question, thank you so much Check n Bilboa Freightlines, S.A, of Panama, has a small truck that it uses for intracity deliveries.

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Check n Bilboa Freightlines, S.A, 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: Presen Truck New Truck Purchase cost new Remaining book value Overhaul needed now Annual cash operating costs Salvage value-now Salvage value-five years from now s30,000 35,0ee 20,88 s 19,00 % 18,000 $ 5,000 19,000 5,000 14,0e0 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 die resulting in a substantial reduction in annual operating costs, as shown above. 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 factorts) using tables

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