Your company needs to purchase a track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000 and has an hourly operation cost of $31.00 and a useful life of...

Your company needs to purchase a track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000 and has an hourly operation cost of $31.00 and a useful life of four years. At the end of four years its salvage value is $20,000. The second track hoe costs $65,000 and has an hourly operation cost of $36.00 and has a useful life of three years. At the end of three years its salvage value is $10,000. The operator cost is $29.00 per hour. The revenue from either track hoe is $95.00 per hour. Using 1,200 billable hours per year and a MARR of 20%, calculate the net present value for both track hoes. Assume that each option is repurchased until their useful lives end in the same year. Which track hoe should your company choose?

Your company needs to purchase a truck and has narrowed the selection to two pieces of equipment. The first truck costs $70,000 and has an hourly operation cost of $13.00 and a useful life of six years. At the end of six years its salvage value is $10,000. The second truck costs $40,000 and has an hourly operation cost of $18.00 and has a useful life of four years. At the end of four years its salvage value is $5,000. The operator cost is $22.00 per hour. The revenue from either truck is $55.00 per hour. Using 1,500 billable hours per year and a MARR of 18%, calculate the net present value for both trucks. Assume that each option is repurchased until their useful lives end in the same year. Which truck should your company choose?