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ABC Transportation, Inc. is considering buying one truck for its business. Two models are being compared: Model A costs $15,000 and requires $3,000 annually in


ABC Transportation, Inc. is considering buying one truck for its business. Two models are being compared:


Model A costs $15,000 and requires $3,000 annually in operating expenses. It can be operated for 3 years with a $5,000 salvage value at the end of its service life. 

Model B costs $20,000 and requires $2,000 annually in operating expenses. It can be operated for 4 years with an $8,000 salvage value at the end of its service life. 

The truck is need for 12 years and the MARR of ABC Transportation, Inc. is 15%, select the most economic model based on AE Analysis

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