Mustang Auto Parts, Inc. is considering one of two forklift trucks for its assembly plant. Truck A costs $15,000 and requires $3,000 annually in operating expenses. It will have a $5,000 salvage value at the end of its three-year service life. Truck B costs $20,000, but requires only $2,000 annually in operating expenses; its service life is four years, at which time its expected salvage value will be $8,000. The firm's MARR is 12%. Assuming that the trucks are needed for 12 years and that no significant changes are expected in the future price and functional capacity of each truck, select the most economical truck on the basis of AE analysis. Equal Payment Series Single Payment Compound Present Amount Worth Factor (P/F, i, N) Sinking Fund Factor Present Worth Compound Amount Factor (F/A, i, N) Capital Recovery Factor Factor (F/P, i, N) Factor (A/P, i, N) N (A/F, i, N) (P/A, i, N) 1.1200 0.8929 1.0000 1.0000 0.8929 1.1200 1.2544 0.7972 2.1200 0.4717 1.6901 0.5917 1.4049 0.7118 3.3744 0.2963 2.4018 0.4183 0.6355 4.7793 0.2092 3.0373 0.3292 1.5735 1.7623 0.5674 6.3528 0.1574 3.6048 0.2774 1.9738 0.5068 8.1152 0.1232 4.1114 0.2432 2.2107 0.4523 10.0890 0.0991 4.5838 0.2191 2.4760 0.4039 12.2997 0.0813 4.9876 0.2013 2.7731 0.3806 14.7757 0.0877 5.3282 0.1877 10 3.1058 0.3220 17.5487 0.0570 5.6502 0.1770 11 3.4785 0.2875 20.6548 0.0484 5.9377 0.1884 12 3.8960 0.2567 24.1331 0.0414 6.1944 0.1614 13 4.3835 0.2292 28.0291 0.0357 6.4235 0.1557 14 4.8871 0.2048 32.3926 0.0309 6.6282 0.1509 15 5.4738 0.1827 37.2797 0.0268 6.8109 0.1488 The equivalent annual cost for truck A over a 12-year period is $ The equivalent annual cost for truck B over a 12-year period is $ in WONIN 1 2 3 4 5 678099