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please help thank you The Speedy-Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $13,000.
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The Speedy-Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $13,000. The new truck will have a useful life of 5 years and a residual value of $1,000. Operating costs for the new truck will be $500 The second option is to overhaul its existing truck. The cost of the overhaul will be $7,000. The overhauled truck will have a useful life of 5 years and a residual value of SO Operating costs for the overhauled truck will be $700. Using Speedy's discount rate of 6%, which option is better and by what amount? EEB (Click the icon to view the present value of S1 table.) (Click the icon to view the present value of annuity of $1 table) O A. Better to overhaul by $19,158 O B. Better to purchase new by $4.411 O C. Better to overhaul by $4,411 O D. Better to purchase new by $19,158Step by Step Solution
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