Company A

Company A is a global technology leader in the design, manufacture and customer support of high$-$quality light$-,$

medium$-$ and heavy$-$duty trucks under a range of nameplates. Nearly $2,000$ locations provide products and services.

Company A is currently expanding its dealer network in Asia in order to provide the company$$s products in more than

$100$ countries. Approximately half of Company A$$s revenues and profits are generated outside the North American

market.

Company B

Company B Canada, is a Canadian subsidiary of Company B USA, is one of the world's leading manufacturers of trucks,

buses and construction equipment; drive systems for marine and industrial applications; aerospace components and

services; and one of the world's leading producers of heavy$-$diesel engines $(916$ litre$).$ The Company B mission has been

formulated as follows: $"$By creating value for our customers, we create value for our shareholders. We use our expertise

to create transport$-$related hard and soft products of superior quality, safety and environmental care for demanding

customers in select markets. We work with energy, passion and respect for the individual."

The mission statement has been thoroughly respected and has been reflected in the consistent shareholders$$ dividend

history, except for the explainable $2009$ dip after the well$-$publicized $2008$ economic recession. In $2015,16$ per cent of

trucks sold in the North American were Company B$.$

Typical Truck Operating Costs

Data Values

Days operating per year $300$

Hours operating per day $16$

Monthly Driver Salary $$5,000$

Fuel Cost $$1\mathrm{.}2$L

Maintenance costs $($per service$)$ $$15,000$

Repairs $($per breakdown$)$ $$10,000$

Average price to date $$85,000$

In addition, you may sell the truck at the end of its useful life, for $20\%$ of purchase price or refurbish fully for $50\%$ of cost$.$

Amount to put into escrow to cover maintenance and servicing.

Age of Truck Years Kilometers C per KM

New $-240,0003\mathrm{.}0$

$1480,0003\mathrm{.}5$

$2720,0004\mathrm{.}0$

$3960,0005\mathrm{.}0$

$41,200,0006\mathrm{.}0$

$5+1,440,0009\mathrm{.}0$