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Charlie's Truck Repair and Service has a new contract that requires him to purchase and maintain new equipment for work on 18-wheeler trucks and heavy
Charlie's Truck Repair and Service has a new contract that requires him to purchase and maintain new equipment for work on 18-wheeler trucks and heavy road equipment. Two separate vendors have made quotes and estimates for Charlie. Use the estimates and 11% per year return requirement to find the better economic option. One problem is that Charlie does not currently know if the contract will last for 5, 8, or 10 years. He needs a recommendation for all three time periods Vendor Tabel 1. Ferguson Halgrove First cost P, $ -203,000 -396,000 M&O, $ per year -90,000 -82,000 Salvage value, SV 10% of P 10% of P Maximum life, years 5 10
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