A company is considering the purchase of a fleet of % ton pickup trucks for their contracting business. The owner is trying to decide whether to purchase the trucks with diesel or gas engines. The company specifies an intermal rate of return on equipment purchases of 6% . The owner estimates the following cash flows of costs for a gas and diesel equipped truck. What is the EUAC of the Diesel Truck? Gas Purchase Diesel Purchase Year & Fuel & Fuel Maintain $39,000 $500 $1,000 $1,500 $2,000 $2,500 $5,000 $3,000 $3,500 $4,000 Maintain $30,000 $250 $300 $350 $400 $6,750 $6,750 $6,750 $6,750 $5,000 $5,000 $5,000 2 3 4 $5,000 $5,000 $5,000 $5,000 6. 7 Note: no need to find the common useful life when using EUAC.

A company is considering the purchase of a fleet of % ton pickup trucks for their contracting business. The owner is trying to decide whether to purchase the trucks with diesel or gas engines. The company specifies an intermal rate of return on equipment purchases of 6% . The owner estimates the following cash flows of costs for a gas and diesel equipped truck. What is the EUAC of the Diesel Truck? Gas Purchase Diesel Purchase Year & Fuel & Fuel Maintain $39,000 $500 $1,000 $1,500 $2,000 $2,500 $5,000 $3,000 $3,500 $4,000 Maintain $30,000 $250 $300 $350 $400 $6,750 $6,750 $6,750 $6,750 $5,000 $5,000 $5,000 2 3 4 $5,000 $5,000 $5,000 $5,000 6. 7 Note: no need to find the common useful life when using EUAC.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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