Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $116,000 to provide short-haul earth- moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,900 per year. A complete overhaul at the end of year 3 costs an extra $3600. Iculate the annual cost of the truck at i=8% per year. e annual cost of the truck is $- 503,717 per year.

Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $116,000 to provide short-haul earth- moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,900 per year. A complete overhaul at the end of year 3 costs an extra $3600. Iculate the annual cost of the truck at i=8% per year. e annual cost of the truck is $- 503,717 per year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Required information Eight years ago. Ohio Valley Trucking purchased a large-capacity dump truck for $116,000 to provide short-haul earth-moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,900 per year. A complete overhaul at the end of year 3 costs an extra $3600. Calculate the annual cost of the truck at /= 8% per year. The annual cost of the truck is $- per year.
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