(Total: 20 marks) z Section B Answer any three questions Q.3 Luntex Ltd were considering...
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(Total: 20 marks) z Section B Answer any three questions Q.3 Luntex Ltd were considering buying an additional truck but the company had not yet decided which particular truck to purchase. The Trucks had broadly similar technical specifications and each was expected to have a working life of five years. The following information was available on the trucks being considered. TRUCKS BN FX VR Sandmaster Rainmaster Speedmaster Purchase price K40,000,000 K45,000,000 K50,000,000 Estimated scrap value After 5 years K8,000,000 K9,000,000 K14,000,000 Fixed costs other than depreciation K^(')000 K^(')000 K^(')000 Year 1 2,000 1,800 1,500 Year 2 2,000 1,800 1,500 Year 3 2,200 1,800 1,400 Year 4 2,400 2,000 1,400 Year 5 2,000 2,200 1,400 Variable cost/road kilometre K0.0
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