Help Save & Exit Mrrel University has a small shuttle bus that is in poor mechanical condition. The bus ca shuttle bus. The following data have been gathered concerning these two alternatives (gnore income taxes) be either overhauled now or replaced with a new Present Bus s 32,000 $40,000 s 21,000 $ 9,000 ew Bus Purchase cost new Remaining net book value Major repair needed now Annual cash operating costs$12,000 8,000 Salvage value now Trade-in value in seven years 2,000 s 5,000 s 10,000 Click here to view Exhibit 13B-1 and Exhibit 1382, to determine the appropriate discount factoris) using the tables provded The University could continue to use the present bus for the next seven years. Whether the present bus is used or a new bus is purchased the bus would be traded in for another bus at the end of seven years. The University uses a discount rate of 12% and the total cost approach to net present value analysis If the new bus is purchased, the present value of the annual cash operating costs associated with this alternative is closest to KPrev 5 of 15l Noxt >