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What is the annual equivalent cost

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The initial cost of a pickup truck is $11037 and will have a salvage value of $4041 after five years. Maintenance is estimated to be a uniform gradient amount of $117 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.31 per mile for 420 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?

Reference no: EM131483934

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