Find the annual equivalent cost for the second year

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Reference no: EM131543696

1. A company buys a pickup truck for $25,000. Each year the truck is in service the trade in value decreases by 20%. Maintenance on the truck will run $2,000 per year while increasing by 15% each year it is in service. The company uses an MARR of 12%. Find the Annual Equivalent Cost for the second year.

A: $8756.87

B: $5325.30

C: $7245.30

D: $6325.30

E: $9386.87

2. Assume that Mexican investors are benefitting from covered interest arbitrage due to a high U.S. interest rate. Because of this, the MXN spot rate is likely to ________________ and the MXN forward rate is likely to _________

Appreciate; appreciate

Depreciate, appreciate

Appreciate; depreciate

Depreciate; appreciate

Reference no: EM131543696

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