Capital Budgeting

The initial cost of a pickup truck is $11,011 and will have a salvage value of $4,142 after five years.
Maintenance is estimated to be a uniform gradient amount of $160 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.27 per mile for 347 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?

RECENT ASSIGMENTS

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