What is the equivalent uniform annual cost

Assignment Help Business Economics

Reference no: EM13836317

The initial cost of a pickup truck is $11,311 and will have a salvage value of $4,266 after five years. Maintenance is estimated to be a uniform gradient amount of $177 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.36 per mile for 402 miles per month. If the interest rate is 12%, what is the Equivalent Uniform Annual Cost (EUAC) for the truck?

Reference no: EM13836317

Questions Cloud

Producers have extremely high production costs : Japanese rice producers have extremely high production costs, in part due to the high opportunity cost of land and to their inability to take advantage of economies of large-scale production. Now an economist is trying to analyze two policies which a..

Development of a strong central national government : Explain why the development of a strong central national government was so important after the civil war and deemed so necessary for the development of the nation. Cite reasons and results

Private practice needs a van to carry crew and equipment : A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,141 per year, paid at the beginning of each year, What is the most she should pay for uniform annual maintenance to make..

Discuss challenges before selecting key management concept : Identify and briefly discuss each of the challenges before selecting one and linking it to a key management concept. How might applying your chosen concept in practice (taking a theory-based approach) help management resolve this case study challe..

What is the equivalent uniform annual cost : The initial cost of a pickup truck is $11,311 and will have a salvage value of $4,266 after five years. Maintenance is estimated to be a uniform gradient amount of $177 per year, with zero dollar for first year maintenance. The operation cost is esti..

What cut off values : The time it takes to process phone orders in a small florist/gift shop is normally distributed with a mean of 6 minutes and a standard deviation of 1.24 minutes. What cut off value would separate the 2.5% of orders that take the most time to process?..

What measures can be utilized to control subsidiaries : What measures can be utilized to control subsidiaries that are less than 100 percent owned by the firm or joint venture partners in which the firm has no ownership?

Measured in payoff units-what is the dominant strategy : Suppose you have been assigned to complete a group project with one of your classmates. Each of you can choose to Shirk or Work. If one or more of you chooses to Work, the project is completed and provides each with extra credit valued at 4 payoff un..

What do you find most interesting in the failure stories : What generalizations apply across the cases? ?What do you find most interesting in the failure stories? ?Do they provide any insights about how a failure might be avoided

User Account

All Pages