Question: i also provided a image down below showing how the answer should look because i recently used chegg as well and got it wrong. please



Merrill Painting Contractors needs to purchase a new truck. The owner is considering two different truck models that are currently on the market. Morral's two alternatives are presented below: i (Click the icon to view the two alternatives.) Il sind a Truck A: Merrill can purchase Truck A for $42,000. The truck has a useful life of 9 years and will require annual maintenance costs of $1,100 each year. Merrill expects to sell the truck for $4,000 after 9 years. Truck B; Merrill can purchase Truck B for $39,000. This truck also has a useful life of 9 years but will have no scrap value. It will require maintenance costs every three years as follows: Year 3: $2,200 Year 6: $4,400 Year 9: $6,400 Requirement Which truck should Merrill purchase given an interest rate of 3%, compounded annually? Assume that maintenance costs will be paid at year-end value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value to method, use factor amounts rounded to five decimal places, X.XXXXX. Round intermediary currency calculations and your final answer to the nea Begin by computing the present value of Truck A The present value of the first alternative (Truck A) is Which truck should Newell purchase given an interest rate of 12%, compounded annually? value and future value tables, the formula method, a financial calculator, or a spreadsheet fe method, use factor amounts rounded to five decimal places, X.XXXXX. Round intermediary Begin by computing the present value of Truck A. The present value of the first alternative (Truck A) is $ 49,902.09 Now compute the present value of Truck B. The present value of the second alternative (Truck B) is $ 43,991.93 Newell should purchase Truck B x You answered: 43,992 Get answer feedback
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