A delivery service owns a small fleet of trucks which was purchased for S150,000 early in the company's fiscal year (same as the calendar year) 2014. It is expected that the fleet will last 2 more years from now and, at that time, will be worth $30,000.00 on the used truck market. Internally, the accountant is using a Sum of the Years Digits depreciation method and the government requires a Capital Cost allowance of 25%. In anticipation of replacing the fleet a junior engineer has come up with the following information. Current market value of the fleet: $80,000. Value of the fleet if it is sold in one year: $57,000 Current year (2016) operating expenses: $30,000, expected to increase 15% per annum Price of the best available replacement option: $180,000 Economic life of the best available replacement option: 6 years Operating expenses for the replacement fleet: $20,000 per annum and expected to remain constant The company's MARR is 10%. The company's corporate tax rate is 32%. A delivery service owns a small fleet of trucks which was purchased for S150,000 early in the company's fiscal year (same as the calendar year) 2014. It is expected that the fleet will last 2 more years from now and, at that time, will be worth $30,000.00 on the used truck market. Internally, the accountant is using a Sum of the Years Digits depreciation method and the government requires a Capital Cost allowance of 25%. In anticipation of replacing the fleet a junior engineer has come up with the following information. Current market value of the fleet: $80,000. Value of the fleet if it is sold in one year: $57,000 Current year (2016) operating expenses: $30,000, expected to increase 15% per annum Price of the best available replacement option: $180,000 Economic life of the best available replacement option: 6 years Operating expenses for the replacement fleet: $20,000 per annum and expected to remain constant The company's MARR is 10%. The company's corporate tax rate is 32%