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Your firm is forced to choose between two trucks. Both trucks can equally do the same work. Truck A costs $15000 and will last 3
Your firm is forced to choose between two trucks. Both trucks can equally do the same work. Truck A costs $15000 and will last 3 years. It costs $4000 per year to run. Truck B costs only $10000, but will last 2 years and costs $6000 a year to run. Which truck is a better option? The discount rate is 5% per annum. Justify your answer.
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