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2 2 ) Evaluation of capital budgeting projects ( 1 5 points ) A construction company is looking to buy new pickup trucks. The company
Evaluation of capital budgeting projects points
A construction company is looking to buy new pickup trucks. The company owner is considering two similar in size models: Chevy Silverado for $ or Ford F for $ Both models will be used for years, then written off will have $ value at the end The Silverado averages milesgallon The F averages milesgallon The owner anticipates the monthly truck mileage to be around miles. All other expenses, such as maintenance, emissions, etc. are expected to be the same for both models. If the firms weighted average cost of capital is APR, truck loan payments will be made at the end of each month, and gas is expected to cost around $gallon which truck should the owner purchase and why? Make sure to provide quantitative evidence to support your recommendation.
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