A bulk materials hauler purchased a used dump truck for %50,000. The operating cost was %5,000 per year, with average revenues of %7,500 per year. After 24 years, the truck was sold for %11,000. The rate of return was closest to;

A bulk materials hauler purchased a used dump truck for %50,000. The operating cost was %5,000 per year, with average revenues of %7,500 per year. After 24 years, the truck was sold for %11,000. The rate of return was closest to;

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A bulk materials hauler purchased a used
dump truck for %50,000. The operating
cost was %5,000 per year, with average
revenues of %7,500 per year. After 24
years, the truck was sold for %11,000. The
rate of return was closest to;
Your answer:
6.6% per year
2.6% per year
4.6% per year
7.6% per year

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