Question 1 0.3125 points Save Ar The Speedy-Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $15,000. The new truck will have a useful life of 4 years and a residual value of $3000. Operating costs for the new truck wil be $500. The second option is to overhaul its existing truck The cost of the overhaul will be $4000. The overhauled truck will have a useful life of 4 years and a residual value of $0, Operating costs for the overhauled truck will be $600. Using Speedy's discount rate of 5 % , which option is better and by what amount? Present Value of $1 Periods 4% 0.855 6 % 5% 0.823 0.784 0.746 0.792 5 0.822 0.747 0.705 0.790 Present Value of Annuity of $1 4% 3.630 4.452 Periods 5% 3.546 4.329 5.076 6 % 3.465 4.212 4.917 6 5.242 Better to overhaul by $8176 Better to purchase new by $8176 Better to overhaul by $18.645 Better to purchase new by $18,645