(Present value tables are required.) The Speedy Delivery Company has two options for its delivery...
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(Present value tables are required.) The Speedy Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $15,000. The new truck will have a useful life of 5 years and a residual value of $2,000. Operating costs for the new truck will be $200. The second option is to overhaul its existing truck. The cost of the overhaul will be $8,000. The overhauled truck will have a useful life of 5 years and a residual value of $0. Operating costs for the overhauled truck will be $600. Using Speedy's discount rate of 5%, which option is better and by what amount? 0 A. Better to purchase new by $3.700 OB. Batter to overhaul by $3,700 OC. Better to purchase new by $5,144 D. Better to overhaul by $5,144
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