How to determine the truck economic life

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Question: Demonstrate how one would calculate the economic life of a truck costing $30,000 initially, and at the end of this and each following year (y) costing OMRy in operation, maintenance and repair costs. The truck is depreciated using the straightline method over 5 years (i.e., $30, 000/5 = Dy ). Its salvage value each year equals its book value. Develop an expression to show how to determine the truck's economic life-that is, the year when the truck's uniform equivalent annual cost is a minimum.

Reference no: EM132168966

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