Homework Answers
| Truck A | Truck B | Incremental | Discounting Factor @10% | Discounted Value | |
| Purchase Cost | 50000 | 70000 | 20000 | 1.000 | 20,000.000 |
| Repairat Year 2 | 10000 | 8000 | -2000 | 0.826 | (1,652.893) |
| Annual Operating cost | 20000 | 18000 | -2000 | 2.486 | (4,972.000) |
| Salvage Value (Y3 End) | 15000 | 20000 | 5000 | 0.751 | 3,755.000 |
=20000+(-1652.89)+(-4972)-3755 = 9620.77
So answer is $9619
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