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 cost of $5200,
and a resale value of $12000 after 4 year. At an
interst rate of 12% which
model should be chosen?