An investor wants to invest in the trucking business. To run this business, 5 trucks should be acquired. The market price of a truck is $70000. It is also necessary to pay $450000 per year as wages to the truck drivers (total including all drivers). Vehicle repair and maintenance costs are $10000 per year (total for all 5 trucks). What is the annual worth of the project's costs at 6% annual interest over a 7-year period?

An investor wants to invest in the trucking business. To run this business, 5 trucks should be acquired. The market price of a truck is $70000. It is also necessary to pay $450000 per year as wages to the truck drivers (total including all drivers). Vehicle repair and maintenance costs are $10000 per year (total for all 5 trucks). What is the annual worth of the project's costs at 6% annual interest over a 7-year period?

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

An investor wants to invest in the trucking business. To run this business, 5 trucks
should be acquired. The market price of a truck is $70000. It is also necessary to pay
$450000 per year as wages to the truck drivers (total including all drivers). Vehicle
repair and maintenance costs are $10000 per year (total for all 5 trucks). What is the
annual worth of the project's costs at 6% annual interest over a 7-year period?

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