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The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 10% discount rate Click here to view and to determine

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image text in transcribedimage text in transcribed The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 10% discount rate Click here to view and to determine the appropriate discount factor(s) using tables. Required: 1. What is the net present value of the "keep the old truck" alternative? 2. What is the net present value of the "purchase the new truck" alternative? 3. Should Bilboa Freightlines keep the old truck or purchase the new one? Complete this question by entering your answers in the tabs below. What is the net present value of the "keep the old truck" alternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) EXHIBIT 14B-1 Present Value of $1;(1+r)n1 Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information: If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above. What is the net present value of the "purchase the new truck" alternative? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Present Value of an Annuity of $1 in Arrears; r1[1(1+r)n1] Complete this question by entering your answers in the tabs below. Should Bilboa Freightlines keep the old truck or purchase the new one

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