Question 4 (20p): Information about the two trucks to be taken to Arel Flour Factory is given below. Their economic lives are equal. If the cost of capital is 20%, which alternative would you choose? X = Purchase Cost = 132.000 Annual Operating Expense= 15,000 Scrap Value = 23,000 Economic Life = 10 years Capital Cost = 20% 

Y=

Purchase Cost 145,000 Annual Operating Expense 19.000 Scrap Value 29,000 Economic Life 10 years Capital Cost 20%