Your company operates a fleet of light trucks that are used to provide contract delivery services. As the engineering and technical manager, you are analyzing the purchase of 45 new trucks as an addition to the fleet. These trucks would be used for a new contract the sales staff is trying to obtain. If purchased, the trucks would cost $19,700 each; estimated use is 20,000 miles per year per truck; estimated operation and maintenance and other related expenses (year-zero dollars) are $0.40 per mile, which is forecasted to increase at the rate of 4% per year; and the trucks are MACRS (GDS) three-year property class assets. The analysis period is four years; t = 26%; MARR = 12% per year (after taxes; includes an inflation component); and the estimated MV at the end of four years (in year-zero dollars) is 35% of the purchase price of the vehicles. This estimate is expected to increase at the rate of 2% per year. Based on an after-tax, actual-dollar analysis, what is the uniform annual revenue required by your company from the contract to justify these expenditures before any profit is considered? This calculated amount for annual revenue is the breakeven point between purchasing the trucks and which other alternative? Click the icon to view the GDS Recovery Rates (r) for the 3-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. More Info GDS Recovery Rates (k) Year 3-year Property Class The annual revenue required by your company from the contract to justify these expenditures before any profit is considered is $ 0.637 million. (Round to three decimal places.) This calculated amount for annual revenue is the breakeven point between purchasing the trucks and which other alternative? Choose the correct choice below. 1 0.3333 2 0.4445 3 0.1481 4 0.0741 A. Purchasing more trucks. B. Making no change in current operations. c. Purchasing another model of trucks. OD. Signing the contract. Print Done