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  3. your company needs to buy a new delivery vehicle,

Your company needs to buy a new delivery vehicle, and you're considering three different options:...

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Accounting

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Your company needs to buy a new delivery vehicle, and you're considering three different options: X, Y, and Z. Each has a different capacity and therefore a different annual profit. Your MARR is 18% and doing nothing is not an option. Initial Cost Annual Profit Salvage Value Useful Life Vehicle X $20,000 $4,800 $3,000 Vehicle Y $22,000 $5,300 $2,500 8 Vehicle Z $25,000 $6,200 $3,400 Using incremental analysis and the IRR, answer the following questions: a) Which vehicle would you choose as the base alternative? b) Analyze the difference between the base alternative and the second-choice alternative. a) Which vehicle would you choose as the base alternative? O A. Vehicle X O B. Vehicle Y OC. Vehicle z b) Analyze the difference between the base alternative and the second-choice alternative. IRRA - ) = % (Round to 1 decimal place) c) Analyze the difference between the current base alternative and the third-choice alternative. IRRAO-D)=% (Round to 1 decimal place) d) Which vehicle should vou choose

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