A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,811 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,510 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,454. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?

A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,811 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,510 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,454. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Note: end of the question 20% not the grade that is MAAR 20%

A construction manager just starting in private practice needs a van to carry crew
and equipment. She can lease a used van for $3,811 per year, paid at the
beginning of each year, in which case maintenance is provied. Alternatively, she
can buy a used van for $6,510 and pay for maintenance herself. She expects to
keep the van for three years at which time she could sell it for $1,454. What is
the most she should pay for uniform annual maintenance to make it worthwhile
to buy the van instead of leasing it, if her MARR is 20%?

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