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A fleet manager must choose between two trucks to purchase for a company's fleet. The company uses an interest rate of 8% and will keep
A fleet manager must choose between two trucks to purchase for a company's fleet. The company uses an interest rate of 8% and will keep either truck for 4 years. Truck A costs $29,000 and has a market value of $15,000 after 4 years. Truck B costs $33,000 and has a market value of $22,000 after 4 years. Determine the present worth of costs (PWC) for the truck the fleet manager should buy. Express your answer as a positive number is $ to the nearest $10.
Please show all work. Answer is $16,829 to check yourself.
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