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1. Your company plans to purchase a new track hoe and has narrowed the selection to two pieces of equipment. Track hoe A costs $100,000

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1. Your company plans to purchase a new track hoe and has narrowed the selection to two pieces of equipment. Track hoe A costs $100,000 and costs $32.00 per hour to operate. Track hoe B costs $110,000 and costs $27.00 per hour to operate. The operator costs $28.00 per hour. The revenue from either track hoe is $95.00 per hour. Using a useful life of four years, a salvage value equal to 20% of the purchase price, 1,200 billable hours per year, and a MARR of 20%, calculate the NPV for both track hoes. Which track hoe should your company choose? 1 Company should choose Second Track because NPV is greater. 2. Calculate the incremental NPV for the problem 1. Which track hoe should your company choose

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