Sandhill Manufacturers is considering investing in a new truck that will be used to deliver its custom-made furniture. Thomas Shop, Controller of Sandhill Manufacturers, is considering a truck which will cost $78400 and which has a useful life of 5 years. The new truck will save $9408 per year in operating costs which are realized at the end of each year. Thomas believes if the new truck is purchased it could be sold for $63210 at the end of its useful life. Sandhills required rate of return is 12%. Type of cash flow Periods Interest rate Factor PV of $1 5 12% 0.5674 FV of $1 5 12% 1.7623 PV ordinary annuity 5 12% 3.6048 FV ordinary annuity 5 12% 6.3528 PV annuity due 5 12% 4.0374

What is the new trucks net present value? (round to the nearest dollar) $--6670 $-8621 $-7549 $16957