question Completion Status: 1 2 3 4 Question 4 10 points The Asse Lulu Hypermarket has a pickup truck that it uses to deliver the online orders to their customers. The truck must be either overhauled or replaced with a neve truck. The company has assembled the following information old Truck New Truck Purchase cost (new) $38,000 $51,000 Remaining book valus $36,000 Overhaul needed now $25,000 Annual cash operating costs $20,000 $18,500 Salvage value (nan) Salvage valus (six years from now) $15,000 $12,000 $10,000 If the company keeps and overhauls its old delivery truck currently in use, then the track will be usable for six more years. If a new truck is purchased, it will be used for soc years, after which it will be waded in with another truck. The new wock 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 11% discount rate. Use the following tables to determine the appropriate discount factor(s) 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 alemane 3.Should Lulu Hypermarket keep the old muck ce purchase the new one? Why? EXHIBIT 14B-1 Present Value of S1: Table Summary: Table of present values of $1. Periods are listed in first column: 1-30 and 40. Columns are given for percents from 4 percent to 25 percent