For the following situation, (a) determine which evaluation method is probably the easiest and fastest to apply by hand and by computer in order to select from the five alternatives, and (b) answer the two questions, using your chosen evaluation method. An independent dirt contractor must determine which size dump truck to buy. The cash flows estimated with each size truck bed are tabulated. The MARR is 18% per year, and all alternatives are expected to have a useful life of 8 years. (1) What size truck bed should be purchased? (2) If two trucks are to be purchased, what should be the size of the second truck?
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