Question: For the data in Problem 10-2 assume that the 5000, 10,000, and 15,000 mileage values are, respectively, pessimistic, most likely, and optimistic estimates. Use a

For the data in Problem 10-2 assume that the 5000, 10,000, and 15,000 mileage values are, respectively, pessimistic, most likely, and optimistic estimates. Use a weighted estimate to calculate the equivalent annual cost.
In Problem 10-2
The purchase of a used pickup for $9000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $990 per year if the truck is driven 10,000 miles. The after 5 years of use drops about $0.08 per mile. Find the equivalent uniform annual cost, if the interest rate is 8%. How much does this change if the annual mileage is 15,000? 5000?

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