ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question 1
0.1 pts
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
0.1 pts
Question 2
A 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 van
for $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 her
MARR is 20%?
Enter your answer as follow: 123456
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Transcribed Image Text:D Question 1 0.1 pts 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 0.1 pts Question 2 A 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 van for $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 her MARR is 20%? Enter your answer as follow: 123456
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