The initial cost of a pickup truck is $10559 and will have a salvage value of $3843 after five years. Maintenance is estimated to be a uniform gradient amount of $152 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.28 per mile for 203 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck? 

Answer rating: 100% (QA)

Solution To calculate the annual equivalent cost AEC of the pickup truck we need to consider the fol... View the full answer