DQuestion 10.1 ptsThe initial cost of a pickup truck is $11,353 and will have a salvage value of $3.724 after five years. Maintenance is estimated tobe a uniform gradient amount of $182 per year, with zero dollar for first year maintenance, The operation cost is estimated to be$0.38 per mile for 168 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?Enter your answer as follow: 1234560.1 ptsQuestion 2A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for$3,524 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used vanfor $6,815 and pay for maintenance herself, She expects to keep the van for three years at which time she could sell it for $1.159.What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if herMARR is 20%?Enter your answer as follow: 123456

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The initial cost of a pickup truck is $11,353 and will have a salvage value of $3.724 after five years. Maintenance is estimated to be a uniform gradient amount of $182 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.38 per mile for 168 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck? Enter your answer as follow: 123456

The initial cost of a pickup truck is $11,353 and will have a salvage value of $3.724 after five years. Maintenance is estimated to be a uniform gradient amount of $182 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.38 per mile for 168 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck? Enter your answer as follow: 123456

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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