The purchase of a used pickup for $22,000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $1950 per year if the truck is driven 12,500 miles. The salvage value after 6 years of use drops about 15¢ per mile. Find the equivalent uniform annual cost if the interest rate is 5%. How much does this change if the annual mileage is 15,000? 10,000?

The purchase of a used pickup for $22,000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $1950 per year if the truck is driven 12,500 miles. The salvage value after 6 years of use drops about 15¢ per mile. Find the equivalent uniform annual cost if the interest rate is 5%. How much does this change if the annual mileage is 15,000? 10,000?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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