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Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $108,000 to provide short-haul...

Question:

Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $108,000 to provide short-haul earth- moving
Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $108,000 to provide short-haul earth- moving 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 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.

Answers

THE ANNUAL COST OF THE TRUCK IS $ - 18360 PER YEAR

Purchase of 0 Quen Sol Calculation of P. V of outflow Years Particular outflowes Pu@8% Present Value 0 o 108000 I 10800 Truck

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