A business owner invests $25,600 in purchasing a delivery car to cater more customers and reduce...

 

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A business owner invests $25,600 in purchasing a delivery car to cater more customers and reduce delivery time. This will incur operating expenses of $0.72 per kilometer for every 400 kilometers per month and the annual maintenance expense will be a uniform gradient amount of $240 which will begin at the end of the first year. Determine the Equivalent Uniform Annual Cost (EUAC) of the newly purchased car if interest is 12% and will be worth $11,000 at the end of 5-year service life? Express your answer as a monthly cost. A business owner invests $25,600 in purchasing a delivery car to cater more customers and reduce delivery time. This will incur operating expenses of $0.72 per kilometer for every 400 kilometers per month and the annual maintenance expense will be a uniform gradient amount of $240 which will begin at the end of the first year. Determine the Equivalent Uniform Annual Cost (EUAC) of the newly purchased car if interest is 12% and will be worth $11,000 at the end of 5-year service life? Express your answer as a monthly cost.

Answer rating: 100% (QA)

Investment or initial cost 25600 Annual operating expenses 072 per kilometer for every 400 kilo... View the full answer