A building company has a fleet of trucks that are all 2 years old that will...

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A building company has a fleet of trucks that are all 2 years old that will work acceptably for another 3 years. They have received a bid from a dealer to replace this fleet of trucks with new trucks that have the same capacity, but lower operating costs, that will work acceptably for 5 years. Should the company replace its fleet of trucks now? Price of trucks brand new Market value of 2 year old trucks Market value of 5 year old trucks Annual Operating Cost ($) Discount rate Old truck 70,000 50,000 5,000 4,000 10% New Truck 80,000 60,000 6,000 3.000 10% A building company has a fleet of trucks that are all 2 years old that will work acceptably for another 3 years. They have received a bid from a dealer to replace this fleet of trucks with new trucks that have the same capacity, but lower operating costs, that will work acceptably for 5 years. Should the company replace its fleet of trucks now? Price of trucks brand new Market value of 2 year old trucks Market value of 5 year old trucks Annual Operating Cost ($) Discount rate Old truck 70,000 50,000 5,000 4,000 10% New Truck 80,000 60,000 6,000 3.000 10%

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