Problem 7 (5 marks) Jared Inc. is considering replacing its existing delivery truck with a new one. The new truck offers considerable fuel savings. The existing truck could be sold immediately. Information about the existing and new trucks is as follows: Existing New Original cost $12,000 $15,000 Annual fuel and other operating expenses $3,500 $2,500 Accumulated depreciation to date $7,000 Current salvage value $2,000 $15,000 Remaining life 5 years 5 years Salvage value in 5 years $0 $5,000 Required: Assume Jared's discount rate is 10%, its income tax rate is 20%, and income taxes only apply to the annual operating savings. Should the company purchase the new truck