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Company ABC is willing to purchase 5 trucks with intial cost of $46000 for each truck, and salvage value of $3000 for each truck after
Company ABC is willing to purchase 5 trucks with intial cost of $46000 for each truck, and salvage value of $3000 for each truck after 5 years. Total maitenance and fuel cost for the first year would be $6500 which will be increased by $500 every year. The total income is predicted to be $42000 per year. With MARR of 10%. Calculate the Equivalent Uniform Annual Cost, Is the investment justified? (5/100) O a. EUAC is $39731, the investment is not justified O b. EUAC is $65622, the investment is justified O c. EUAC is $65622, the investment is not justified O d. EUAC is $39731, the investment is justified
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