. A contractor can buy trucks for P 800,000 each or rent them for P 1,200 per truck per day. The truck has a salvage value of P 100,000 at the end of its useful life of 5 years. The annual maintenance cost is P 20,000 per truck. Using the annual worth method and 14% interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.

. A contractor can buy trucks for P 800,000 each or rent them for P 1,200 per truck per day. The truck has a salvage value of P 100,000 at the end of its useful life of 5 years. The annual maintenance cost is P 20,000 per truck. Using the annual worth method and 14% interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 6RQ

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Similar questions

A contractor can buy trucks for P 800,000 each or rent them for P 1,200 per truck per day. The truck has a salvage value of P 100,000 at the end of its useful life of 5 years. The annual maintenance cost is P 20,000 per truck. Using the annual worth method and 14% interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.
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