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pls show ur step answer 27 then show ur step The Superior Landscaping Company must replace one or two of his aging utility trucks in
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answer 27 then show ur step
The Superior Landscaping Company must replace one or two of his aging utility trucks in calendar year 2020. The key parameters of the three trucks under scrutiny are provided below. RAM Parameters 1. Initial Cost ($) GM 265,000 275,000 2. Revenues FORD 235,000 220,000 at EOY1 increasing by 2% annually thereafter. 110,000 at EOY1 to EOY3. 240,000 at EOY1 increasing by $3,000 annually thereafter. 254,000 at EOY1 increasing by 1.0% annually thereafter. ($) 145,000 at EOY1 decreasing by $1,000 annually thereafter 183,000 at EOY1 decreasing by 1% annually thereafter. 3. Operating costs ($) 4. End-of-life salvage value ($) 5. Useful life (years) 6,000 17,000 12,000 3 4 6 All parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% 27. If the company's truck budget is $550,000, which truck(s) should it purchase assuming that trucks are independent investments? a) RAM only; b) Ford and GM; c) Ford and RAM; d) GM and RAM. 28. If the company prefers to purchase two trucks instead of one truck in 2020 (that is, one truck in the first half of 2020 and the other in the second half of 2020), which truck in Question 27 should it purchase first? a) Ford; b) GM; c) RAM; d) Both trucks should be purchased at the same time Step by Step Solution
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