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Class Exercise : A project manager has received two quotations for buying a new Off-Highway trucks for his new road construction project. The information required

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Class Exercise : A project manager has received two quotations for buying a new Off-Highway trucks for his new road construction project. The information required to evaluate the two options are shown in the table below. The project manager will make a present worth analysis using a 10% interest rate. Conduct the analysis and determine which truck should the manager accept (select). Truck A Truck B Initial Cost 600,000 540,000 Annual O & M cost 35,000 30,000 70,000 62,000 Major repair @ 10 Yrs Tires replacement @ 3 years Salvage Value Service Life(years) 40,000 50,000 30,000 30,000 15 15

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