What is the annual equivalent cost for truck

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Reference no: EM131606635

The initial cost of a pickup truck is $12842 and will have a salvage value of $3910 after five years. Maintenance is estimated to be a uniform gradient amount of $148 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.23 per mile for 364 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?

Reference no: EM131606635

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