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6. The best truck based on the NFW method is a) Alpha; b) Beta; c) Gamma. 7. Based on the simple payback method, Alphas recovery

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6. The best truck based on the NFW method is a) Alpha; b) Beta; c) Gamma. 7. Based on the simple payback method, Alphas recovery period (to the nearest half or full year) is a) 2.5; b) 3.0; c) 3.5; d) 4.0. 8. Based on the simple payback method, Betas project balance after 2 years (rounded to the nearest $100) is a) $-340,100; b) $-255,900; c) $-159,100; d) $-98,800. 9. Based on the discounted payback method, Betas recovery period (to the nearest half or full year) is a) 7.0; b)7.5; c) 8.0; d) 9.0.

A waste disposal company is considering the replacement of one of its aging trucks. The key parameters of the three trucks under scrutiny are rovided below Parameters 1. Initial Cost Gamma 400,000 480,000 500,000 260,000 at EOY1 increasing by 2,000 annually thereafter 130,000 at EOY1 decreasing by 1% annually thereafter 280,000 at EOY1304.000 at EOY1 | increasing by 1% annually thereafter increasing by 2% annually thereafter 2. Revenues 215,000 at EOY1 3. Operating decreasing by EOY1-EOY8 250,000; | EOY9-EOY16-260.000 costs | 2% annually thereafter 4. End-of-life salvage value (S) 5. Useful life 6,000 10,000 10,000 4 16 ears EOY End-of-year . Industry Standard 4 years MARR-10%

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