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ABC Distributor is planning on opening a new warehouse in College Station and is considering buying their own fleet (of 2 trucks) for College Station.

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ABC Distributor is planning on opening a new warehouse in College Station and is considering buying their own fleet (of 2 trucks) for College Station. The associated costs are: Cost of goods: $60,000 per truck Usage costs: Insurance: $5,000 per truck, paid at the beginning of each year Gas: $5,000 per truck, per year Maintenance: $3,000 per truck, per year End-of-Life costs: you can sell each truck for $6,000 after 2 years Develop the Total Cost of Ownership analysis considering a useful life of 2 years for the two truck, and an annual interest rate of 10%. Make sure you fill each cell (including zeros) and round your number to integers. Year 2 Cost Present Year 1 Cost of Goods 12000 0 0 Usage Costs: 10000 10000 0 Insurance 0 Gas 10000 10000 O Maintenance 6000 6000 End-of-Life Costs: 0 0 12000 Salvage Value Year Total 13000 26000 28000 Present Values (PV130000 @ 10% 23636 3306

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