ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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A construction manager just starting in private practice needs a
van to carry crew and equipment. She can lease a used van for
$3,510 per year, paid at the beginning of each year, in which
case maintenance is provied. Alternatively, she can buy a used
van for $5,185 and pay for maintenance herself. She expects to
keep the van for three years at which time she could sell it for
$1,330. What is the most she should pay for uniform annual
maintenance to make it worthwhile to buy the van instead of
leasing it, if her MARR is 20%?
Enter your answer as follow: 123456
1,892.07
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Transcribed Image Text:A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,510 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,185 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,330. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%? Enter your answer as follow: 123456 1,892.07
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