A fleet manager must choose between two trucks to purchase for a company's fleet. The company uses an interest rate of 8% and will keep either truck for 3 years. Truck A costs $29,000 and has a market value of $16,000 after 3 years. Truck B costs $33,000 and has a market value of $23,000 after 3 years. Determine the present worth of costs (PWC) for the truck the fleet manager should buy. Express your answer as a positive number is $ to the nearest $10.

A fleet manager must choose between two trucks to purchase for a company's fleet. The company uses an interest rate of 8% and will keep either truck for 3 years. Truck A costs $29,000 and has a market value of $16,000 after 3 years. Truck B costs $33,000 and has a market value of $23,000 after 3 years. Determine the present worth of costs (PWC) for the truck the fleet manager should buy. Express your answer as a positive number is $ to the nearest $10.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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