The Speedy - Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $15,000. The new truck will have a useful life of 5 years and a residual value of $2,000. Operating costs for the new truck will be $300. The second option is to overhaul its existing truck. The cost of the overhaul will be $9,000. The overhauled truck will have a useful life of 5 years and a residual value of $0. Operating costs for the overhauled truck will be $500. Using Speedy's discount rate of 4%, which option is better and by what amount? Click the icon to view the present value of $1 table.) Click the icon to view the present value of annuity of $1 table.) OOO A. Better to purchase new by $3,466 B. Better to overhaul by $23, 110 C. Better to purchase new by $23, 110 OD. Better to overhaul by $3,466 The Speedy - Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $15,000. The new truck will have a useful life of 5 years and a residual value of $2,000. Operating costs for the new truck will be $300. The second option is to overhaul its existing truck. The cost of the overhaul will be $9,000. The overhauled truck will have a useful life of 5 years and a residual value of $0. Operating costs for the overhauled truck will be $500. Using Speedy's discount rate of 4%, which option is better and by what amount? Click the icon to view the present value of $1 table.) (Click the icon to view this Data Table A. Better to purchase ng B. Better to overhaul by Present Value of $1 C. Better to purchase ne Periods OD. Better to overhaul by 4 0.855 0.823 0.792 5 0.822 0.784 0.747 6 0.746 0.705 OOOO 5% 6% 0.790 Print Done e Speedy - Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $15,000. The new truck will have a eful life of 5 years and a residual value of $2,000. Operating costs for the new truck will be $300. The second option is to overhaul its existing truck. me cost of the overhaul will be $9,000. The overhauled truck will have a useful life of 5 years and a residual value of $0. Operating costs for the erhauled truck will be $500. Using Speedy's discount rate of 4%, which option is better and by what amount? Click the icon to view the present value of $1 table.) Click the icon to view the Data Table - X A Better to purchase nd B. Better to overhaul by Present Value of Annuity of $1 C. Better to purchase ne 5% 6% D. Better to overhaul by 3.630 3.465 4.452 4.329 5.076 4.917 4% 3.546 Periods 4 5 6 4.212 5.242 Print Done
