PROBLEM #1: CAPITAL INVESTMENT ANALYSIS (4 pts.) Indiana Freight Lines has a small truck 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 data: Purchase cost new Remaining book value Overhaul needed now Annual cash operating costs Salvage value now Salvage value five years from now Present Truck New Truck $ 21,000 $ 30,000 11,500 7,000 10,000 6,500 9,000 1,000 4,000 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, and the old truck would be sold for salvage. The new truck would be diesel-operated, resulting in substantial reductions in annual operating costs as shown above. The company computes depreciation on a straight-line basis, and all investment projects are evaluated using a 15% discount rate. Required: Should Indiana Freight Lines keep the old truck or purchase the new one? Use net present value analysis in making your decision. Show your calculations