What is the annual equivalent cost for the truck

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Reference no: EM131446819

The initial cost of a pickup truck is $11338 and will have a salvage value of $3830 after five years. Maintenance is estimated to be a uniform gradient amount of $194 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.21 per mile for 261 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?

Reference no: EM131446819

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