Required: 1-a. Determine the present value of net cash flows using the totalcost approach. (Negative amounts should be indicated with a minus sign. Round discount factorfs] to 3 decimal place.) Purchase the new tmck Keepmeommck 1-b. Should Bilboa Freightlines keep the old truck or purchase the new one? 0 Purchase the new truck 0 Keep the old truck 7. Using the incrementalcost approach, determine the net present value in favor of [or against} purchasing the new.r truck? (Negative amounts should be indicated with a minus sign. Round discount factorls} to 3 decimal place.) _:| Bilboa Freightlines, SA. of Panama has a small truck that it uses for local deliveries. The truck is in bad repair and must be either overhauled or replaced with a new truck. The company has assembled the following information [Panama uses the U5. dollaras its currency): Present New Truck Truck Purchase cost new 5 43,666 $ 59,566 Remaining book value 28,666 Overhaul needed now 11,566 - Annual cash operating costs 14,566 11,566 Salvage value now 15,566 Salvage value eight years from now 3,866 6,366 If the company keeps and overhauls its present delivery truck, then the truck will be usable for eight more years. If a new truck is purchased, it will be used for eight years, after which it will be traded in on another truck. The new truck would be dieselfuelled, resulting in a substantial reduction in annual operating costs, as shown above. The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 16% discount rate. Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factoris) using tables. Required: 1-a. Determine the present value of net cash flows using the totalcost approach. (Negative amounts should be indicated 'with a minus sign. Round discount factoris] to 3 decimal place.) Purchase the new truck