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Problem 1) The City of Bryan is currently paying a local repair shop to maintain their...

Problem 1) The City of Bryan is currently paying a local repair shop to maintain their fleet of asphalt trucks. The shop charges $450 per truck per month. The City estimates that for an initial cost of $150,000 they could open their own repair facility and handle the repairs at a cost of $200/truck/month, including all wages, overhead, etc. At the end of 100 months they will close the facility, which will have a $60,000 salvage value. If the city’s nominal MARR is 12%/year, how many trucks would they have to have in their fleet to make the change economically attractive?

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