Subject : Business Finance (Engineering Economics)

Will Save this response. Question 8 of 11 > Save Answer Question 8 20 points MAXX Internaltional is considering one of two forklifts trucks for its assembly plant. Truck A costs $15,000 and requires $3,000 monthly in operating expenses. It will have a salvage value of $5,000 at the end of its three-year service life. Truck B costs $20,000 but requires only $2,000 annually in operating expenses; its service life is 4 years; at which time its expected salvage value will be $8,000. The firm's MARR is 10%. Assuming that the trucks are needed for 12 years and that no significant changes are expected in the future price and functional capacity each truck, select the most economical truck based on AE analysis SOLUTION Fill in the blanks ANSWER SUMMARY TABLE - fill in the answer in the table Truck A Truck B Firm's MARR First Cost 6 Reminders Monthly Operating Cost Salvage Value (at end of service life) Symposium on Personal Brand by the T... MS Teams Overdue (2021-04-01) Service Life (years) MARR (compounded monthly) Symposium on Personal Brand by the... Overdue PMC Leadership Symposium - Team... Overdue [Symposium) Project Leadership Min... Overdue Join Online Snooze Dismiss 50 61 8 9r 10 110 Fill in the blanks ANSWER SUMMARY TABLE - fill in the answer in the table Truck A Truck B Firm's MARR First Cost Monthly Operating Cost Salvage Value (at end of service life) Service Life (years) For Blank 8 MARR (compounded monthly) Cost of Ownership Operating Costs 6 Reminders Total Annual Costs Symposium on Personal Brand by the T... MS Teams Overdue (2021-04-01) Preferred Process (Type Yes or No) Symposium on Personal Brand by the... Overdue PMC Leadership Symposium - Team... Overdue (Symposium] Project Leadership Min... Overdue Join Online Snooze - Dismiss