Maintenance costs for a truck with an expected 15-year life


Problem

Maintenance costs for a truck with an expected 15-year life are estimated to be $1000 each year for the first 10 years, in addition to $5,000 maintenance cost in the year 8 and another $2500 in year 12. If interest rate is 8% per year, what is the equivalent uniform annual cost over the entire 15-year period?

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Auditing: Maintenance costs for a truck with an expected 15-year life
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