Problem
A small manufacturing company is evaluating trucks for delivering their products. Truck A has a first cost of $22,000, its operating cost will be $5500 per year, and its salvage after 3 years will be $7000. Truck B has a first cost of $27,000, an operating cost of $5200, and a resale value of $12,000 after 4 years. At an interest rate of 15% per year, which model should be chosen if an annual worth analysis is performed? Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.