7. A municipality is trying to decide the purchase of a refuse collection vehicle. Two types ful vehicles that are consi

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7 A Municipality Is Trying To Decide The Purchase Of A Refuse Collection Vehicle Two Types Ful Vehicles That Are Consi 1 (14.53 KiB) Viewed 22 times

7. A municipality is trying to decide the purchase of a refuse collection vehicle. Two types ful vehicles that are considered with their costs are shown. Each truck is expected to have a useful Cat of 10 years. Which truck should the municipality purchase based on these costs alone? Calculate the costs based on present worth basis, assuming a rate of interest of 8%. Assume the present worth factor, Cr-5.71 Capital cost Truck A $80,000 Maintenance cost per year Truck B $120,000 $2000 $4000 $6000 (5) Fuel and oil cost per year $8000