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Question 3 (20 points): Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment: Option A:
Question 3 (20 points): Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment: Option A: The first track hoe costs $100,000 and has an hourly operating cost of $31.00 and a $35,000 salvage value at the end of three years. Option B: The second track hoe costs $65,000 and has an hourly operating cost of $36.00 and no salvage value at the end of three years. The revenue from either track hoe is $95.00 per hour. Using 1,200 billable hours per year and a MARR of 18%, calculate the NPV for both track hoes. Which track hoe should your company choose
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