Determine the equivalent uniform annual cost for the truck

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A fleet manager must choose between two trucks to purchase for a company's fleet. The company uses an interest rate of 7% and will keep either truck for 5 years. Truck A costs $29,000 and has a market value of $17,000 after 5 years. Truck B costs $32,000 and has a market value of $20,000 after 5 years. Determine the equivalent uniform annual cost (EUAC) for the truck the fleet manager should buy.

Reference no: EM131027070

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