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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

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?

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