Question 5 (18 points) Mr. Chow runs a food delivery business. His company currently owns a delivery truck (the Existing Truck"), which was purchased 3 years ago at a cost of $120,000. The Existing Truck has a low fuel economy, and Mr. Chow is considering replacing it with a new one ("New Truck"). The New Truck, which costs $150,000, has a useful life of 6 years. The New Truck is more fuel efficient, and replacing the Existing Truck with a New Truck will lead to an annual cost savings of $22,000 for the next 6 years. Set out below is a comparison of the New Truck and Existing Truck: New Truck Cost today: $150,000 Useful life: 6-years Depreciation schedule: 6-year straight line to zero Salvage value at the end of Year 6 = $17,000 Existing Truck Purchased 3 years ago at: $120,000 Useful life: 10-years Depreciation schedule: 10-year straight line to zero Salvage value today = 92,000 Salvage value at the end of Year 6 = 12,500 Mr. Chow's required rate of return is 12%, and the tax rate is 25%. There is no change in net working capital for this replacement project. a. What is the operating cash flow for this replacement project? b. What is the NPV of this project? c. What is the IRR of this project? d. Should Mr. Chow replace the truck