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Sunland'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 tas for a new truck would represent a major expenditure. Sunland Austen, owner of the garage, has compliled the following. estimates in trying to determine whether the tow truck should be purchased. Sunland's good friend, Rick Ryan, stopped by. He is trying to convince Sunland that the tow truck will have other benefits that Sunland haso't even considered. First, he says, cars that need towing need to be foxed. Thus, when Sunland tows them to her facility. her repair revenues witt increase. Second, he notes that the tow truck could have a plow mounted on it, thus saving Sunland the cost ef plowing her parking lot. (Rick will give her a used plow blade for free if Sunland will plow Rick's driveway) Third, he notes that the truck will gerierste goodwilt; people who are rescued by Sunland'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 hawe "Sunland's Auto Care' on its doors, hood, and back taileate--2 form of free advertising wherever the tow truck goes. Rick estimates that, at a minimum, these benefits would be worth the following form of free advertisire wherever the tow truck goes Fickestimates that, at a minimum these becolis would be worth the followhe The conoam scost of capital is ox. Calculate the ret presene vahe, ienoring the additional bervefts described by Rick. If the ert present value is nejative, wie Net present value 5 Should the tow truck be purchased? The tow truck be purchased. 125. For calculation purposes, irte 5 decimal places os dispiored in the factar table provided. Net present value Should the tow truck be purchased? The iow truck be purchaned

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