1. A pipeline contractor can purchase a needed truck for $40000.Its estimated li

1. A pipeline contractor can purchase a needed truck for $40000.Its estimated life is 6 years and it has no salvage value.Maintenance is estimated to be $2400/year. Operating expenses is$60/day.The constructor can hire a similar unit for $150/day. MARR is7%a. How many days/year must the trucks services be needed such thatthe two alternatives are equally costly?b. If the truck is needed for 180 days per year should thecontractor buy the truck or hire the similar one? Why?2. ABC Inc. is considering purchasing flow valves thatwill reduce annual operating costs by $ 10000 per year forthe next 12 years. ABC Inc MARR is 12%/year.Using a PW approach determine themaximum amount ABC inc should be willing topay for the valves.