Step 1: Create the cash flow diagram for Ford F-150 Step 2: Create the cash flow diagram for Ford F -450

step 3: Evaluate AW for Ford F-150

Step 4: Evaluate AW for Ford - 450

You dad has asked you to help him with purchase of a new truck. He is considering two options, Ford F150 with MSRP of $28,940 and Ford F-450 with MSRP of $50,410. Both cars will provide the same level of service but have different useful lives and costs. Select the best option using a MARR=20%. Use the repeatability assumption. Capital investment Annual gas expense maintenance Ford F150 Ford F-450 $28,940 $50,410 $1,720 $2,365 $1,110 in year 1 and increasing No expense for the first three $500/yr thereafter years (covered by dealer), $500 in year 4 and increasing $200/yr thereafter 5 9 $15,000 $20,000 Useful life Market value You dad has asked you to help him with purchase of a new truck. He is considering two options, Ford F150 with MSRP of $28,940 and Ford F-450 with MSRP of $50,410. Both cars will provide the same level of service but have different useful lives and costs. Select the best option using a MARR=20%. Use the repeatability assumption. Capital investment Annual gas expense maintenance Ford F150 Ford F-450 $28,940 $50,410 $1,720 $2,365 $1,110 in year 1 and increasing No expense for the first three $500/yr thereafter years (covered by dealer), $500 in year 4 and increasing $200/yr thereafter 5 9 $15,000 $20,000 Useful life Market value