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Recycling Truck Example 3 (Incremental Analysis) (1)

# Recycling Truck Example 3 (Incremental Analysis) (1) - else...

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Recycling Truck Example 3 (Incremental Analysis) The township of Berkeley Heights, New Jersey is starting a curbside recycling program and needs to purchase an automated recycling collection truck. They are evaluating the three trucks below. It costs the township 6% per year to issue municipal bonds, so they’ve chosen that interest rate as their MARR. All
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Unformatted text preview: else being equal, which truck should they purchase? Initial cost = \$125,000 O&M costs = \$6000/yr Salvage value = \$40,000 Useful life = 10 yrs Initial cost = \$142,000 O&M costs = \$4200/yr Salvage value = \$44,000 Useful life = 10 yrs Initial cost = \$145,000 O&M costs = \$4000/yr Salvage value = \$60,000 Useful life = 10 yrs...
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