Each truck would be driven 150,000 miles per year and the average cost of gasoline is $2.50 per gallon. The MARR= 12% and the stidy period is 60 years. Assuming repeatability, which type of truck would you twll FedEx to purchase? Use any appropriate profitability measure to make your decision. Clearly document your solution process.

m/courses/42937/assignments/711394 FedEx is purchasing new trucks for its fleet. Differences in cash flow data between the trucks are tabled below. Truck A Truck B Purchase Price $52,000 $40,000 Fuel Efficiency 40 miles per gallon 30 miles per gallon Maintenance expense per year $6,000 $5,500 Salvage value at end of useful life $5,000 6 years 5 years Useful life Each truck would be driven 150,000 miles per year and the average cost of gasoline is $2.50 per gallon. The MARR - 12% and the study period is 60 years. Assuming repeatability, which type of truck would you tell FedEx to purchase? Use any appropriate profitability measure to make your decision. Clearly document your solution process