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Your firm's discount rate is 30 percent.You are considering the purchase of Truck A or Truck B.Truck A costs $100, has a useful life of

Your firm's discount rate is 30 percent.You are considering the purchase of Truck A or Truck B.Truck A costs $100, has a useful life of 3 years, no salvage value and maintenance costs of $10 per year.Truck B costs $80, has a useful life of 2 years, no salvage value and maintenance costs of $15 per year.Which truck should you select and why?

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Truck A because the EAC of -53.8 is less than Truck B's EAC of -64.2

Truck B because the EAC of 73.8 is greater than Truck A's EAC of 65.1.

Truck A because the EAC of -65.1 is less than Truck B's EAC of -73.8.

Truck A because the NPV of 118 if larger than B's NPV of 100.

If done in excel please show formulas..

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