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Question 1 (10 points) Salam is considering buying a truck to improve the logistic operation at his company. There are two providers available on the

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Question 1 (10 points) Salam is considering buying a truck to improve the logistic operation at his company. There are two providers available on the market. The first provider sells the truck at $110,000 with annual maintenance cost at $15,000 with useful life 4 years. The salvage value after 4 years is $60,000. The second provider sells the truck at $150,000 with annual maintenance cost at $12,000 with useful life 8 years. The salvage value after 8 years is $50,000. Help the company to choose the correct alternative using Present Worth Analysis. Minimum Acceptable Return Rate (MARR) is 12%

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