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Homework: Chapter 11 Score: 0 of 1 pt 5 of 8 (7 complete) HW Score: 76.25%, Problem 11-4 (book/static) Question A firm is trying to
Homework: Chapter 11 Score: 0 of 1 pt 5 of 8 (7 complete) HW Score: 76.25%, Problem 11-4 (book/static) Question A firm is trying to decide between two types of trucks, one a conventional gasoline vehicle and the other a diesel powered. The following information is av Initial investment Useful life Salvage value Operating cost per mile Gasoline $27.000 4 years $9,000 $0.42 Diesel $21,000 3 years $6,000 $0.36 a. With interest at 5% per year, determine the annual mileage at which the two trucks are equivalent. b. For 15,000 miles per year in travel, which truck should be recommended? Click the icon to view the interest and annuity table for discrete compounding when/-5% per year. a. The annual mileage at which the two trucks are equivalent is 4 miles. {Round to the nearest whole number.)
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