Reference no: EM13976348
The purchase of a used pick up for $14,000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $2500 per year if the truck is driven 10,000 miles. The salvage value after 5 years of use drops about 10 cents per mile. Find the equivalent uniform annual cost if the interest rate if 6 %. How much does this change if the annual mileage is 15,000 ? 5,000 ? EUAC for 10000 miles = $6605, up to $9558, down to $3653. Please show work. Useful life : 5 years
For the data in Problem 10-2 assume that the 5000, 10,000, and 15,000 mileage values are, respectively, pessimistic, most likely, and optimistic estimates.
Use a weighted estimate to calculate the equivalent annual cost.
Please show work. Useful like 5 years.
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