A landscaper is planning the purchase of a new truck to meet the growing demand on his business. The key parameters of the three trucks (Ford, Ram and GM) under scrutiny are provided below. Parameters Ram 85,000 GM 125,000 1. Initial Cost ($) 75,000 140,000 at EOY1 15,000 at EOY1 increasing by creasing by $3,000 annually | 3% annually 209,000 annually 2. Revenues ($) | 3. Operating Costs | increasingby 2%| 4. End-of-life salvage 5.Useful life (years) thereafter 90,000 at EOY1112,000 at EOY1 135,000 at EOY1 increasing by 4% annually thereafter. increasing by | annually $4,000 annually thereafter. 30,000 5 thereafter. thereafter 15,000 10 40,000 value (5) EOY End-of-year . Industry Standard 4 years . MARR-10%.
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