Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 25

Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $115,000 to provide short-haul earthmoving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,500 per year. A complete overhaul at the end of year 4 cost an extra $3600. Calculate the annual cost of the truck at 8% per year interest.