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3 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: ints New Truck 149.000 300 Purchase cont nou Remaining book value Overhaul needed now Annual cash operating costs Salvage valus now Salvage value-five years from now Present Truck 5 36,000 $26.000 $ 23,000 $ 15,000 $ 13,000 $10,000 $ 10,50 References 5 800 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 The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 9% discount rate Click here to view Exhibit 148.1 and Exhibit 148 2. to determine the appropriate discount factors) 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? ule 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. Required 1 Required 2 Required 3 What is the net present value of the "keep the old truck alternative? (Enter negative amount with a minius slon. Round your final answer to the nearest whole dollar amount.) Net present value Required 2 >

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