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A company is evaluating two options of buying delivery truck. Truck A has initial cost of $32,000, its operating cost will be $5500 per
A company is evaluating two options of buying delivery truck. Truck A has initial cost of $32,000, its operating cost will be $5500 per year, and its salvage value after 3 years will be $7000. Truck B has initial cost of $37,000, an operating cost of $5200, and a resale value of $12,000 after 4 years. At an interest rate of 10% which model should be chosen?
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