What is the annual equivalent cost aec for the


The initial cost of a pickup truck is $12508 and will have a salvage value of $4330 after five years. Maintenance is estimated to be a uniform gradient amount of $156 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.22 per mile for 212 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?

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Financial Management: What is the annual equivalent cost aec for the
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