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5-32. The town of Millbridge has to make a deci- sion on replacing its garbage truck. It has narrowed the choice down to two different

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5-32. The town of Millbridge has to make a deci- sion on replacing its garbage truck. It has narrowed the choice down to two different models. Model A will initially cost $80,0o0 and then will cost $4,100 per year to oper- ate for its 20-year life. Model B will initially cost $100,0o0 and then will cost $3,600 per year to operate for its 30-year life. Use e annualized cost approach to determine which is a better choice. Assume a discount rate of 6 percent per year

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