Eight years ago, Ohio Valley Trucking purchased a large- capacity dump truck for $106,000 to provide...

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Answer 1

Answer #1

Annual cost = [ -106,000(A/P, 8%, 8)] -10500 - [3600(P/F, 8%,4)(A/P,8%,8)] + [ 45000(A/F,8%,8) ]

Annual cost = -[106,000*0.17401] - 8800 - [ 3600*0.63017 *0.17401] + [45,000*0.09401]

Annual cost = -18445.06 - 8800 - 394.76 + 4230.45 = $ - 23409 per year

Answer 2

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