A contractor can buy trucks for 800 000 usd each or rent them for 1,200 usd per truck per day. The truck has a salvage value of 100, 000 usd at the end of its useful life for 5 years. The annual maintenance cost is 20 000 usd per truck. Using the annual worth method and 14 % interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.
A contractor can buy trucks for 800 000 usd each or rent them for 1,200 usd per truck per day. The truck has a salvage value of 100, 000 usd at the end of its useful life for 5 years. The annual maintenance cost is 20 000 usd per truck. Using the annual worth method and 14 % interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.
Chapter1: Making Economics Decisions
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A contractor can buy trucks for 800 000 usd each or rent them for 1,200 usd per truck per day. The truck has a salvage value of 100, 000 usd at the end of its useful life for 5 years. The annual maintenance cost is 20 000 usd per truck. Using the annual worth method and 14 % interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.
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