What is the annual equivalent cost for the truck

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The initial cost of a pickup truck is $12,859 and will have a salvage value of $4,027 after five years. Maintenance is estimated to be a uniform gradient amount of $181 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.27 per mile for 331 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?

Reference no: EM13734272

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