The Liam and Vince cargo company is providing logistic services within the Luzon area. The company is growing and they need additional delivery trucks to meet delivery demands from their customers. Two options are being studied, its either they buy new delivery trucks or they hire delivery services from a trucking company. Assume money is worth 0.12 per annum. Option 1: Five new trucks which cost P1.8M each, with a maintenance cost of P200,000.00 each truck per year and comprehensive insurance of P40,000.00 each per year. Option 2: Hiring a trucking service company with the same capacity of the five trucks but needs an initial contract cost of P2.5M and a yearly fee of P1.0M.
The Liam and Vince cargo company is providing logistic services within the Luzon area. The company is growing and they need additional delivery trucks to meet delivery demands from their customers. Two options are being studied, its either they buy new delivery trucks or they hire delivery services from a trucking company. Assume money is worth 0.12 per annum. Option 1: Five new trucks which cost P1.8M each, with a maintenance cost of P200,000.00 each truck per year and comprehensive insurance of P40,000.00 each per year. Option 2: Hiring a trucking service company with the same capacity of the five trucks but needs an initial contract cost of P2.5M and a yearly fee of P1.0M.
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