A contractor can buy trucks for 800,000 php each or rent for 1,200php per trucks per day. The truck has a salvage value of 100,000php at the end of its useful life of five years. The annual maintenance cost is 20,000php per truck. Using the annual cost method and 14% interest rate, determine the number of days per year that each truck must be used to warrant its purchase.

EXAMPLE 6 A contractor can buy trucks for P 800,000 each or rent am forD 1200 .00 pent r uay, ille K has a salvage value of 100,000 at the end of tis useful life of five years. Thed annual maintenance cost s annual is P 20.000 per truck. , delimine the| number of days peryear , its purchase. cost method land, 14% interest rate, (44t) 54iai each truck must be used to warrant