A delivery car had a first cost of $34000, an annual operating cost of $18000, and an estimated $4000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 3.000 years and must be sold now as a used vehicle. At an interest rate of 9.00% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? The market value of the used vehicle is determined to be $

A delivery car had a first cost of $34000, an annual operating cost of $18000, and an estimated $4000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 3.000 years and must be sold now as a used vehicle. At an interest rate of 9.00% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? The market value of the used vehicle is determined to be $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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