A contractor can buy trucks for 950,000 each or rent them for 1500 per truck. The truck has a salvage value of 100,000 at the end of its useful life of 5 years. The annual maintenance cost is 20,000 per truck . Using The annual Cost method and 15% interest rate, Determine the minimum number of days per year that each truck must used to warrant its purchace.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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A contractor can buy trucks for 950,000 each or rent them for 1500 per truck. The truck has a salvage value of 100,000 at the end of its useful life of 5 years. The annual maintenance cost is 20,000 per truck . Using The annual Cost method and 15% interest rate, Determine the minimum number of days per year that each truck must used to warrant its purchace.

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