Your firms discount rate is 8 percent. You are considering the purchase of Truck A or Truck B. Truck A costs $120, 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?

Truck A because the EAC of -56.6 is less than Truck Bs EAC of -59.9

Truck A because the NPV of 146 if larger than Bs NPV of 107

Truck B because the EAC of 59.9 is greater than Truck As EAC of 56.6