10. (After DeGarmo et al, 1984) A construction company is going to purchase several heavy-duty trucks. Its M.A.R.R. before taxes is 18%. It is considering two makes, and the following relevant data are available. Big Mack Cost Wiltsbilt $10,000 $15,000 Life (estimated by manufacturer) 3 years Salvage value at end of life 5 years $2,000 $3,000 Annual out-of-pocket costs $4,000 $3,000 (a) Which type of truck should be selected when the repeatability assumption is appropriate? (b) Which type of truck would you recommend if the study period is limited to 3 years (coterminated assumption) and it is estimated that a Big Mack truck will have a salvage value of $5,600 at that time?