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Qestion below pictures, can you help me to correct incremental cost approach in excel file? I know the answer should be NPV in favor of

Qestion below pictures, can you help me to correct incremental cost approach in excel file? I know the answer should be NPV in favor of overhauling the old truck. image text in transcribed
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16% 1 Data Block 2 Bilboa Freightlines 3 4 Required Rate of Return 5 6 7 8 Purchase cost new 9 Overhaul needed now 10 Annual cash operating costs 11 Salvage value now 12 Salvage value five years from now 13 14 $ $ $ Present Truck $ (7,000) (10,000) $ 9,000 1,000 New Year/ Annuity Truck Periods vs Single Sum (30,000) 0 Single Sum 0 Single Sum (6,500) 5 Annuity 0 Single Sum 4,000 5 Single Sum U Bilboa Freightlines, S.A. Total Cost Approach Net Present Value Calculation Amount of Year(s) Cash Flows PV Item Overhaul old truck: Overhaul now Annual cash operating costs 2 Salvage value in five years Net Present Value $ OOO 5 5 (7,000) $ (10,000) 1,000 $ (7,000) (32,743) 476 (39,267) Purchase new truck: Purchase cost new Salvage value of old truck now Annual cash operating costs Salvage value of new truck in five years Net Present Value 5 5 $ (30,000) $ 9,000 (6,500) 4,000 $ (30,000) 9,000 (21 283) 1,904 (40,378) NPV in favor of overehauling the old truck $ (1,112) Bilboa Freightlines, S.A Incremental Approach Net Present Vall Calculation Item Year(s) Amount of Cash Flows PV 0 $ Incremental investment - in favor of old truck Additional annual cash operating costs Lost salvage value in five years Lost salvage value for old truck now 0 5 5 23,000 $ 9,000 (3,500) (3,000) 23,000 (9,000) (11,460) (1,428) NPV in favor of purchasing the new truck 1,112

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