Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $115,000 to provide short- haul earthmoving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,500 per year. A complete overhaul at the end of year 4 cost an extra $3600. Calculate the annual cost of the truck at 8% per year interest

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $115,000 to provide short-
haul earthmoving services. The company sold it today for $45,000. Operating and maintenance costs
averaged $10,500 per year. A complete overhaul at the end of year 4 cost an extra $3600. Calculate the
annual cost of the truck at 8% per year interest
Transcribed Image Text:Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $115,000 to provide short- haul earthmoving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,500 per year. A complete overhaul at the end of year 4 cost an extra $3600. Calculate the annual cost of the truck at 8% per year interest
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