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Consider a truck that is going to be purchased for $175,000. It will cost $19,500 each year to operate including fuel and maintenance. It will need to have its engine rebuilt in 6 years for a cost of $122,000 and it will be sold at year 9 for $36,000. Here is the cash flow diagram: 4$36,000 EOY 1 2. + $19,500 $122,000 $175,000 In what single year is the total combined value of the machine positive?

Consider a truck that is going to be purchased for $175,000. It will cost $19,500 each year to operate including fuel and maintenance. It will need to have its engine rebuilt in 6 years for a cost of $122,000 and it will be sold at year 9 for $36,000. Here is the cash flow diagram: 4$36,000 EOY 1 2. + $19,500 $122,000 $175,000 In what single year is the total combined value of the machine positive?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Consider a truck that is going to be purchased for $175,000. It will cost $19,500 each year to operate including fuel and maintenance. It will need to have its engine rebuilt in 6 years for a cost of $122,000 and it will be sold at year 9 for $36,000. Here is the cash flow diagram: $36,000 EOY 1 6. + $19,500 $122,000 $175,000 In what single year is the total combined value of the machine positive?
Transcribed Image Text:Consider a truck that is going to be purchased for $175,000. It will cost $19,500 each year to operate including fuel and maintenance. It will need to have its engine rebuilt in 6 years for a cost of $122,000 and it will be sold at year 9 for $36,000. Here is the cash flow diagram: $36,000 EOY 1 6. + $19,500 $122,000 $175,000 In what single year is the total combined value of the machine positive?
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