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15. According to a racant press release, the UPS fleet includes more than LESS alternative fuel vehicles. in sdditlon to its tradltionsl fossil iuel truclr

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15. According to a racant press release, the UPS fleet includes more than LESS alternative fuel vehicles. in sdditlon to its tradltionsl fossil iuel truclr lines. These alternative fuel vehicles deliver to homes and businesses every day alongside their traditional fuel counterparts. 111s alternative ilaet includes compressed natural gas, propane-powered, hybrid electric, electric, liqueed natural ms. hydraulic hybrldl and fuel cell vehicles. This ilctlonel problem outlines possible considerations. UPS has decided to replace s diesel-powered truck line in its ilaet with electric hybrid drive train Glass 5 trucirs for environmental reasons {not cost savings}. UPS has a choice between an Electric 'll'ehlcles lrrtemstionsl {EVI} electric hybrid and a similar truck manufactured by Efficient I'Jriyeb'ains, Inc. {EDI}. The Eli! tmcir costs $13D.D; saves $3,061} In fuel costs per year compared to the diesel truck; has a useful life of 4 years: and can be salvaged at a price at $30.00!} [based on estimates for the price of s eryesr-cld electric hybrld truck}. "the EDI truck costs $14,l}l}; ssyes $4.illi in ioal costs per year; has a useful life of 5 years; and can then be salvaged at a price of SEEMS {based on estimates for the price of s Edyesr-cld electric hybrid truck}. UPS depraciatas its trucks according to 5-year \"AGES. uses a WASP. of 15% for ground transportation projects, and has a tax rate of 35%. Working capital is unstiectad by troclir replacement. Assume ination Is [1% Which electric hybrid truck should UPS optlmslly select? Essa your decision on an EAS analysis and assume the EAS for EDI is SEEDS. EAG[EUI} e amass e eecfeof} : amass; E'rff is preferred EAGIEUI} = asses e escreea = amass; E'rff is preferred escfewf : sassf :- Eecfeof} e amass; ED! is preferred escfEfff} : as.efs d eecfeof} e amass; ED! is preferred F-FF'F' To reduce the number at steps in solving this problem, consider the following psrtlally completed analysis for the E'll'l truck: \"fear: [I 1 2 3 II 5-Year MrrFlS aa. ass. 32. Ems 1Q .aaas 11.52% species sum :2: Tent Baaisr'Ec-olt Value 13, 104. i} 52 d 3? 440 22 454

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