Truck A: $80,000 initial; $6000/yr maintenance; $8000/yr fuel and oil Truck B: $120,000 initial; $2000/yr maintenance; $4000/yr fuel and oil

A city is trying to decide on the purchase of a garbage truck. Two types of trucks are being considered, A and B, each with a useful life of 10 years. The capital and operating costs for each truck are given below. (a) which truck should the city purchase based on these costs alone? Calculate the costs both 4. on an annual and present worth basis assuming an interest rate of 8%