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5-24 Walt Wallace Construction Enterprises may buy a A new dump truck with a 10-year life. Interest is 6%. The cash flows for two likely

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5-24 Walt Wallace Construction Enterprises may buy a A new dump truck with a 10-year life. Interest is 6%. The cash flows for two likely models are as follows: First Cost Annual Operating Annual Salvage Cost Income Value 10 Model 20 B $65,000 59,000 $8,000 $16,000 $25,000 10,000 17,500 19,000 20 20 (a) Using present worth analysis, which truck should the firm buy, and why? (b) Before the construction company can close the deal, the dealer sells out of Model B and cannot get any more. What should the firm do now, and why? Ench of two

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