The fast food Truck company has two options for delivery truck the first option is to purchase a new truck at $18,000. the new truck will have a used to live in four years any rational value of $3000. operating cost for the new truck will be $300.

the second option is an overhaul its existing track the cost of the overall will be $5000. the overhaul truck will have useful life for four years and a reasonable value of zero dollars. operating cost of the overall truck will be $800 using the companies discount rate of 4% which option is better for what amount.

The Fall Truck Company has two posto de truck. The stationstecher The way and als 53.000. Operating costs for the new truck be 5300 The secondotta mother of the be. The years of Operating costs for the ever will be 5800 Using the counts which brand by what Present of Periods 0.85 . 0.22 0.784 0.147 07 OT 705 Penul Anuty of 51 Perio S 1.00 3546 DA Berto purchase by S30 OB Bertouches by $21.185 O Butter 21,125 OD Beth by 1620 company's discount rate of 4%, which option is better and by what amount? Present Value of $1 Periods 4 5 6 4% 0.855 0.822 0.790 5% 0.823 0.784 0.746 6% 0.792 0.747 0.705 Present Value of Annuity of $1 Periods 4% 4 3.630 5 4.452 6 5.242 5% 3.546 4.329 5.076 6% 3.465 4.212 4.917 O A. Better to purchase new by $8,620 B. Better to purchase new by $21,185 C. Better to overhaul by $21,185 OD. Better to overhaul by $8,620