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Gasoline Diesel Initial investment $27,000 $21,000 Useful life 4 years $9,000 3 years $6,000 Salvage value Operating cost per mile $0.42 S0.36

Gasoline Diesel Initial investment $27,000 $21,000 Useful life 4 years $9,000 3 years $6,000 Salvage value Operating cost per mile $0.42 S0.36

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A firm is trying to decide between two types of trucks, one a conventional gasoline vehicle and the other a diesel powered. The following shown information is available. a. With interest at 5% per year, determine the annual mileage at which the two trucks are equivalent. b. For 15,000 miles per year in travel, which truck should be recommended?

Gasoline Diesel Initial investment $27,000 $21,000 Useful life 4 years $9,000 3 years $6,000 Salvage value Operating cost per mile $0.42 S0.36
Transcribed Image Text:Gasoline Diesel Initial investment $27,000 $21,000 Useful life 4 years $9,000 3 years $6,000 Salvage value Operating cost per mile $0.42 S0.36
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