What is the annual equivalent cost for the truck

Reference no: EM13691144

The initial cost of a pickup truck is $12,975 and will have a salvage value of $3,622 after five years. Maintenance is estimated to be a uniform gradient amount of $134 per year, with zero dollars for first year maintenance. The operation cost is estimated to be $0.34 per mile for 220 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?

Reference no: EM13691144

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