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A profitable company needs to get a large truck for moving materials for which they can choose between the following options. Option A . Buy
A profitable company needs to get a large truck for moving materials for which they can choose between the following options.
Option A Buy a used truck with years of depreciable life for $ and sell it after this time for $ It is expected that this truck would need an annual $ maintenance fee at the end of each year. Each day the truck is used operating expenses are expected to be $ payable at the end of the year.
Option B Rent this truck only for the days they need it for $ day also payable at the end of the year. All maintenance and operating cost paid for by the renting company.
Based on a combined income tax rate, straightline depreciation, and an after tax MARR of determine show all work the minimum number of days per year that the truck should be used to make option A more attractive.
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