You are considering purchasing a dump truck. The truck will cost $75000 and have operating and maintenance costs that start at $18000 the first year and increases by $2000 per year. Assume that the salvage value at the end of five years is $22000 and interest rate is 12%. What is the equivalent annual cost of owning and operating the truck?You are considering purchasing a dump truck. The truck will cost $75000 and have operating and maintenance costs that start at $18000 the first year and increases by $2000 per year. Assume that the salvage value at the end of five years is $22000 and interest rate is 12%. What is the equivalent annual cost of owning and operating the truck?
