The purchase of a truck is $45000 and has a maintenance cost of $500 the 1st year and increases by $2000 per year. assume the salvage value at the end of 5 years is $9000 and the interest rate is 12%. Find the Net present value of one truck. Calculate the equivalent annual cost of one truck.

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter9: Pricing Construction Equipment
Section: Chapter Questions
Problem 6RQ
Question

The purchase of a truck is $45000 and has a maintenance cost of $500 the 1st year and increases by $2000 per year. assume the salvage value at the end of 5 years is $9000 and the interest rate is 12%. Find the Net present value of one truck. Calculate the equivalent annual cost of one truck.

 

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