Question: I need the answer for question B Jane's Auto Care is considering the purchase of a new tow truck. The garage doesn't currently have a

 I need the answer for question B Jane's Auto Care is

I need the answer for question B

Jane's Auto Care is considering the purchase of a new tow truck. The garage doesn't currently have a tow truck, and the $59,960 price tag for a new truck would represent a majar expenditure. Jane Austen, awner of the garage, has compiled the estimates shown below in trying to determine whether the tow truck should be purchased. Jane's gaod friend, Rick Ryan, stopped by. He is trying to corvince Jane that the tow truck will have ather benefits that Jane hasn't even considered. First, he says, cars that need towing need to be fixed. Thus, when Jane tows them to her facility, her repair revenues will increase. Second, he nates that the taw truck could have a plaw mounted on it, thus saving Jane the cost of plowing her parking lot. (Rick will give her a used plow blade for free if Jane will plow Rick's driveway) Third, he notes that the truck will generate goodwill; people who are rescued by Jane's tow truck will feel grateful and might be more inclined to use her service station in the future or buy gas there. Fourth, the tow truck will have "Jane's Auto Care" on its doors, hood, and back tailgate-a form of free advertising wherever the tow truck goes Rick estimates that, at a minimum these benefits would be worth the following. The comparr's cost of capital is 9%. (a) Your answer is correct. Calculate the net present value, ignoring the additional benefits described by Rick. Of the net present value is negative, use either a negative sign preceding the number eg - 45 or parentheses eg (45). Round answer to 0 decimai ploces, eg. 125 . For calcuiation purposes. use 5 decimal places as displayed in the factor table provided.) Net present value $ Should the tow truck be purchased? The tow truck be purchased. (b) Calculate the net present value, incorporating the additional benefits suggested by Rick. (ff the net present value is negative, use either a negative sign precedirg the number eg. 45 ar parentheses eg. (45). Round arower to 0 decimal piaces, eg. 125. Far calculation purposes, use 5 decimal piaces as displayed in the factor table provided.) Net present value $ Should the tow truck be purchased? The tow truck be purchased

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