Determine the incremental rate of return

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A fleet manager must choose between two trucks to purchase for a company's fleet. The company will keep either truck for 5 years. Truck A costs $28,000 and has a market value of $16,000 after 5 years. Truck B costs $34,000 and has a market value of $25,000 after 5 years. Determine the incremental rate of return that should be used to determine whether the more expensive truck is worth the additional cost. Express your in % (not a decimal) to the nearest 0.1%

Reference no: EM131088853

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