Question: You are considering purchasing a dump truck. The truck will cost $55,000 and have an operating and maintenance cost that starts at $18,000 the first

You are considering purchasing a dump truck. The truck will cost $55,000 and have an operating and maintenance cost that starts at $18,000 the first year and increases by $2,000 per year. Assume that the salvage value at the end of five years is $12,000 and interest rate is 12%. What is the equivalent annual cost of owning and operating the truck?

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