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The tucks B cost 535,000 a tuck. Maintenam-e costs for the truck will be higher. In the first year th expected to be 54,000,
The tucks B cost 535,000 a tuck. Maintenam-e costs for the truck will be higher. In the first year th expected to be 54,000, and this amount is expected to Increase by 51,500 a _%ar through the eighth year. fourth year the engine will need to be rebuilt, and this Will cost the company 518,000 in addition to mainte costs In that year. At the end of eight years the truck will have an estimated scrap value of 57,000. a) Using MACRS CS-year property), estimate the after-tax cash flows related to the trucks? (Use Tax r b) ABC Construction's opportunity cost of funds is 10%, which truck should it accept? c) its opportunity cost were 13%, would your answer change? S) 3. Proposals A, B, C, D, E and F are being considered with money flows over 10 years. Investment Net Annual Benefit Sal Value ooo 540000 susooo 513 ooo ooo s; ooo 52,200 510,000 512,000 514,000 53 ooo so s: ooo ooo ssoo Proposal (A and D) are mutually exclusive, (C and F) are also mutually exclusive, and proposal B de on C or F. The MARR is set at 10%. a) Formulate the problem 'with Integer Programming. b) proposal(s) should be selected if the amount of money available for investment is S 100,000?
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