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Compare Trucks A & B Costs Over 3-4 Years for Delivery

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A small manufacturing company is evaluating trucks for delivering their products. Truck A has a first cost of $32,000, its operating cost will be $5500 per year, and its salvage after 3 years will be $7000. Truck B has a first cost of $37,000, an operating cost of $5200, and a resale value of $12,000 after 4 years. At an interest rate of 12% which model should be chosen?.

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A small manufacturing company is evaluating trucks for delivering their products. Truck A has a first cost of $32,000, its operating cost will be $5500 per year, and its salvage after 3 years will be $7000. Truck B has a first cost of $37,000, an operating cost of $5200, and a resale value of $12,000 after 4 years. At an interest rate of 12% which model should be chosen?

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Compare Trucks A & B Costs Over 3-4 Years for Delivery

  • 1. A small manufacturing company is evaluating trucks for delivering their products. Truck A has a first cost of $32,000, its operating cost will be $5500 per year, and its salvage after 3 years will be $7000. Truck B has a first cost of $37,000, an operating cost of $5200, and a resale value of $12,000 after 4 years. At an interest rate of 12% which model should be chosen?