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Red Brick Ltd is considering replacing its existing fleet of trucks with a fleet of new trucks.It plans to evaluate two options based on the following information:
Management is considering two options:
i.Option (i) Replace the old trucks now and operate the new trucks for five years,to be replaced in perpetuity;
ii.Option (ii) Replace the old trucks in five years' time and operate the new trucks for five years,to be replaced in perpetuity.
Which option should the management choose?
Mid-ocean Ridges
Undersea mountain ranges formed by plate tectonics, where new oceanic crust is created by volcanic activity.
Lithosphere
The rigid outer layer of the Earth, consisting of the crust and the upper part of the mantle.
Transform Faulting
A type of strike-slip fault where tectonic plates slide past each other horizontally, often causing earthquakes.
Subducted Plate
A tectonic plate that is being forced downward into the mantle by another plate at a subduction zone.
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