A firm is trying to decide between two types of trucks, one a conventional gasoline vehicle and the other a diesel powered. The following information is available. Initial investment Useful life Salvage value Operating cost per mile Gasoline $25,000 6 years $8,000 $0.46 Diesel $21,000 5 years $5,000 $0.39 a. With interest at 3% per year, determine the annual mileage at which the two trucks are equivalent. b. For 17,000 miles per year in travel, which truck should be recommended? Click the icon to view the interest and annuity table for discrete compounding when i = 3% per year. a. The annual mileage at which the two trucks are equivalent is 22 miles. (Round to the nearest whole number.) N 1 2 3 4 5 6 Discrete Compounding; i = 3% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA PIA A/F 1.0300 0.9709 1.0000 0.9709 1.0000 1.0609 0.9426 2.0300 1.9135 0.4926 1.0927 0.9151 3.0909 2.8286 0.3235 1.1255 0.8885 4.1836 3.7171 0.2390 1.1593 0.8626 5.3091 4.5797 0.1884 1.1941 0.8375 6.4684 5.4172 0.1546 1.2299 0.8131 7.6625 6.2303 0.1305 1.2668 0.7894 8.8923 7.0197 0.1125 1.3048 0.7664 10.1591 7.7861 0.0984 1.3439 0.7441 11.4639 8.5302 0.0872 Capital Recovery Factor To Find A Given P A/P 1.0300 0.5226 0.3535 0.2690 0.2184 0.1846 0.1605 0.1425 0.1284 0.1172 7 8 9 10 A firm is trying to decide between two types of trucks, one a conventional gasoline vehicle and the other a diesel powered. The following information is available. Initial investment Useful life Salvage value Operating cost per mile Gasoline $25,000 6 years $8,000 $0.46 Diesel $21,000 5 years $5,000 $0.39 a. With interest at 3% per year, determine the annual mileage at which the two trucks are equivalent. b. For 17,000 miles per year in travel, which truck should be recommended? Click the icon to view the interest and annuity table for discrete compounding when i = 3% per year. a. The annual mileage at which the two trucks are equivalent is 22 miles. (Round to the nearest whole number.) N 1 2 3 4 5 6 Discrete Compounding; i = 3% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA PIA A/F 1.0300 0.9709 1.0000 0.9709 1.0000 1.0609 0.9426 2.0300 1.9135 0.4926 1.0927 0.9151 3.0909 2.8286 0.3235 1.1255 0.8885 4.1836 3.7171 0.2390 1.1593 0.8626 5.3091 4.5797 0.1884 1.1941 0.8375 6.4684 5.4172 0.1546 1.2299 0.8131 7.6625 6.2303 0.1305 1.2668 0.7894 8.8923 7.0197 0.1125 1.3048 0.7664 10.1591 7.7861 0.0984 1.3439 0.7441 11.4639 8.5302 0.0872 Capital Recovery Factor To Find A Given P A/P 1.0300 0.5226 0.3535 0.2690 0.2184 0.1846 0.1605 0.1425 0.1284 0.1172 7 8 9 10
