Problem

An engineering company buys a used pickup truck for $6000. keeps it for 5 years. and salva...

An engineering company buys a used pickup truck for $6000. keeps it for 5 years. and salvages it for $ 1000. Annual costs forgas. oil. and other normal costs are $900. Repair costs are $200 the first year and then grow at an 8% compound annual rate. The engineering company uses an interest rate of 8%. Draw the cash flow diagram. and calculate present worth of cost (salvage is treated as a reduction in cost).

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