I know the answer to the first two questions so you don't have to answer that

Useful life is 10 years for the first truck and we are comparing only EAC,

N=10

Interest per year is given as 10% (discount rate). So,

I/Y=10.0 (%)

Problem 1 (Equivalent Annual Cost EAC. Total points: 27) Company X is choosing a policy on the age at which to replace trucks in its fleet, which depends upon which truck line it chooses. There are two (mutually exclusive) alternatives A) a 10 year truck that has initial (time ) price/cost $25,000, annual maintenance cost of $1000/year and salvage value in year/time 10 of 56000, or B) a 15 year truck that has initial (time ) price/cost of $28,000, annual maintenance cost of $1500/year, and salvage value in year/time 15 of $3000 All cash flows are after tax. Discount rate - 10% I recommend you first write down your calculator entries for step 1" (calculating the NPV of costs and step 2" (calculating the EAC) for each of the two trucks; THEN you can go through and answer the questions based on what you have written down We begin with the three questions to calculate the NPV of costs for the 10 year truck (STEP 1 Part I a. (STEP 1, 10 year truck.) To calculate the NPV of net costs for the 10 year truck, please indicate your calculator entries for N and 1/4, where N is a simple integer (es. 20 for 20 periods). and I/Y is recorded as xx.x (to one decimal, recorded as percentage points per the calculator) N- 1/Y Question 2 2 pts Problem 1. Part I b. (STEP I, 10 year truck.) To calculate the NPV of net costs for the 10 year truck please indicate your calculator entries for PMT and FV. Note: You need to include All cash flows in the Step 1 calculation. However, the initial (time ) truck cost will be counted in partic, NOT here. (Please indicate EXACTLY how you enter the corresponding value in the calculator, eg, 1.000 for positive 1,000 dollars (no $ signs, with comma as needed, no decimal point, round to nearest dollar), -1,000 for negative one thousand dollars. Be sure to enter a negative (-) for a cash outflow (cost) and a positive (without a + or :) for money you receive (cash inflow) PMT- FV- Question 3 2 pts Problem 1. Partic (STEP 1, 10 year truck) What is the NPV lofnet costs) for the 10-year truck strategy? (Hint: Here, the new truck cost SHOULD be counted in this NPV as a time cost. This is your "bottom line answer for Step 1 and is rounded to the nearest dollar 25.145 028831 0 29.000 31,145 35.000 O 21.169 Question 4 2 pts Problem 1. Part 1 d. (STEP 2. 10 year truck.) In the next 3 questions (part Id-f. please indicate your entries/calculations for the Equivalent Annual Cost of the 10-year truck. We start (part 1 d) with your calculator entries for N and 1/Y, where is a simple integerle.g. 20 for 20 periods), and I/Yis recorded as xox (to one decimal, recorded as percentage points per the calculator) N- 1/ Question 5 2 pts Problem 1. Partie (STEP 2, 10 year truck) to calculate the EAC for the 10 year truck what are your calculator entries for FV and PV? Please indicate how you enter the corresponding value in the calculator, es 1,000 for positive 1.000 dollars (no signs, with comma as needed, no decimal point, ROUND TO NEAREST DOLLAR) -1,000 for negative one thousand dollars. You can enter a negative (1) for a cash outflow (cost or value of cost) and a positive without a + or -) for money you receive tash inflow).) FV- PV- Question 6 25 pts Problem 1. Part 1 (STEP 2. 10 year truck) What is the Equivalent Annual Cost for the 10-year truck? 3.445 1,500 4,100 04.692 5.000 5,696 Question 7 2 pts Problem 1. Partia (STEP 1, 15 YEAR TRUCK) To calculate the NPV of net costs for the 15 year truck, please indicate your calculator entries for N and 1/Y.where is a simple integer les 20 for 20 periods, and I/Y is recorded as xxx to one decimal recorded as percentage points per the calculator) Note: A 15 year truck that has initial price/cost of $28.000, annaltenance cost of $1.500/year, and salvage value after 15 years of $3000. The discount rate is 10% before N- 1/Y- Question 8 2 pts Problem 1. Part II b. (STEP I, 15 year truck) To calculate the NPV of niet costs for the 15 year truck please indicate your calculator entries for PMT and FV. Note: You need to include ALL cash flows in the Step 1 calculation. However, the initial time) truck cost will be counted in partic, NOT here. (Please indicate EXACTLY how you enter the corresponding value in the cake 1,000 for positive 1,000 dollars (no signs with comma as needed, no decimal point round to nearest dollar). -1,000 for negative one thousand dollars. Be sure to enter a negative for a cash outflow costo and a positive (without a+ or -) for money you receive cash info PMT- FV- Problem 1 (Equivalent Annual Cost EAC. Total points: 27) Company X is choosing a policy on the age at which to replace trucks in its fleet, which depends upon which truck line it chooses. There are two (mutually exclusive) alternatives A) a 10 year truck that has initial (time ) price/cost $25,000, annual maintenance cost of $1000/year and salvage value in year/time 10 of 56000, or B) a 15 year truck that has initial (time ) price/cost of $28,000, annual maintenance cost of $1500/year, and salvage value in year/time 15 of $3000 All cash flows are after tax. Discount rate - 10% I recommend you first write down your calculator entries for step 1" (calculating the NPV of costs and step 2" (calculating the EAC) for each of the two trucks; THEN you can go through and answer the questions based on what you have written down We begin with the three questions to calculate the NPV of costs for the 10 year truck (STEP 1 Part I a. (STEP 1, 10 year truck.) To calculate the NPV of net costs for the 10 year truck, please indicate your calculator entries for N and 1/4, where N is a simple integer (es. 20 for 20 periods). and I/Y is recorded as xx.x (to one decimal, recorded as percentage points per the calculator) N- 1/Y Question 2 2 pts Problem 1. Part I b. (STEP I, 10 year truck.) To calculate the NPV of net costs for the 10 year truck please indicate your calculator entries for PMT and FV. Note: You need to include All cash flows in the Step 1 calculation. However, the initial (time ) truck cost will be counted in partic, NOT here. (Please indicate EXACTLY how you enter the corresponding value in the calculator, eg, 1.000 for positive 1,000 dollars (no $ signs, with comma as needed, no decimal point, round to nearest dollar), -1,000 for negative one thousand dollars. Be sure to enter a negative (-) for a cash outflow (cost) and a positive (without a + or :) for money you receive (cash inflow) PMT- FV- Question 3 2 pts Problem 1. Partic (STEP 1, 10 year truck) What is the NPV lofnet costs) for the 10-year truck strategy? (Hint: Here, the new truck cost SHOULD be counted in this NPV as a time cost. This is your "bottom line answer for Step 1 and is rounded to the nearest dollar 25.145 028831 0 29.000 31,145 35.000 O 21.169 Question 4 2 pts Problem 1. Part 1 d. (STEP 2. 10 year truck.) In the next 3 questions (part Id-f. please indicate your entries/calculations for the Equivalent Annual Cost of the 10-year truck. We start (part 1 d) with your calculator entries for N and 1/Y, where is a simple integerle.g. 20 for 20 periods), and I/Yis recorded as xox (to one decimal, recorded as percentage points per the calculator) N- 1/ Question 5 2 pts Problem 1. Partie (STEP 2, 10 year truck) to calculate the EAC for the 10 year truck what are your calculator entries for FV and PV? Please indicate how you enter the corresponding value in the calculator, es 1,000 for positive 1.000 dollars (no signs, with comma as needed, no decimal point, ROUND TO NEAREST DOLLAR) -1,000 for negative one thousand dollars. You can enter a negative (1) for a cash outflow (cost or value of cost) and a positive without a + or -) for money you receive tash inflow).) FV- PV- Question 6 25 pts Problem 1. Part 1 (STEP 2. 10 year truck) What is the Equivalent Annual Cost for the 10-year truck? 3.445 1,500 4,100 04.692 5.000 5,696 Question 7 2 pts Problem 1. Partia (STEP 1, 15 YEAR TRUCK) To calculate the NPV of net costs for the 15 year truck, please indicate your calculator entries for N and 1/Y.where is a simple integer les 20 for 20 periods, and I/Y is recorded as xxx to one decimal recorded as percentage points per the calculator) Note: A 15 year truck that has initial price/cost of $28.000, annaltenance cost of $1.500/year, and salvage value after 15 years of $3000. The discount rate is 10% before N- 1/Y- Question 8 2 pts Problem 1. Part II b. (STEP I, 15 year truck) To calculate the NPV of niet costs for the 15 year truck please indicate your calculator entries for PMT and FV. Note: You need to include ALL cash flows in the Step 1 calculation. However, the initial time) truck cost will be counted in partic, NOT here. (Please indicate EXACTLY how you enter the corresponding value in the cake 1,000 for positive 1,000 dollars (no signs with comma as needed, no decimal point round to nearest dollar). -1,000 for negative one thousand dollars. Be sure to enter a negative for a cash outflow costo and a positive (without a+ or -) for money you receive cash info PMT- FV