Find the annual equivalent cost for the second year

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Reference no: EM131989274

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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.

Reference no: EM131989274

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