ABC Co. is considering two alternatives to replace a delivery truck. The following data have been gathered concerning these two alternatives:

	Truck A	Truck B
Purchase cost new	$50,000	$60,000
Major repairs end of year 2	$10,000	$6,000
Annual cash operating costs	$20,000	$15,000
Salvage value at the end of 3 years	$15,000	$20,000

ABC Co. uses a 12% discount rate and the incremental cost approach to capital budgeting analysis. Both trucks are expected to have a useful life of three years. Required: a) Prepare the incremental cost analysis of the two alternatives. b) If the only decision factor is the difference in net present value, which truck of the two should be purchased?