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B. Problems and Questions The Superior Landscaping Company must replace one or two of his aging utility trucks in calendar year 2020. The key parameters

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B. Problems and Questions The Superior Landscaping Company must replace one or two of his aging utility trucks in calendar year 2020. The key parameters of the three trucks under scrutiny are provided below Parameters 1. Initial Cost GM 265,000 RAM 275,000 ($) 2. Revenues FORD 235,000 220,000 at EOY1 increasing by 2% annually thereafter. 110,000 at EOY1 to EOY3. 240,000 at EOY1 increasing by $3,000 annually thereafter. 254,000 at EOY1 increasing by 1.0% annually thereafter. ($) 3. Operating costs 145,000 at EOY1 decreasing by $1,000 annually thereafter 183,000 at EOY1 decreasing by 1% annually thereafter. ($) 6,000 17,000 12,000 4. End-of-life salvage value ($) 5. Useful life (years) All parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% 1. Ford's Net Present Worth (NPW) (rounded to the nearest $100) of a) $45,100; b) $51,500; c) $53,400; d) $56,700. RAM's NPW (rounded to the nearest $100) is a) $69,800; b) $76,300; c) $79,300; d) $83,400. GM's Net Future Worth (NFW) at EOY4 (rounded to the nearest $100) is a) $95,500; b) $98,600; c) $100,200; d) $102,800. Ford's Annual Equivalent Worth (AEW) (rounded to the nearest $100) is a) $21,500; b) $24,600; c) $25,900; d) $28,200. RAM's AEW (rounded to the nearest $100) over 18 years it was repeated several times) is a) $17,700; b) $19,200; c) $20,800; d) $21,100

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