A small manufacturing company
is evaluating trucks for delivering their product. Truck A has
first cost of $32000, its operating cost will be $5500 per year,
and its salvage after 3 years will be $7000. Truck B has a first
cost of $37000, an operating cos
t of $5200,
and a resale value of $12000 after 4 year. At an

interst rate of 12% which
model should be chosen?

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