A contractor can buy trucks for P950,000 each or rent them for P1,500 per truck. The truck has a salvage value of P100,000 at the end of its useful life of 5 years. The annual maintenance cost is P20,000 per truck. Using the annual cost method and 15% interest rate, determine the minimum number of days per year that each truck must used to warrant its purchase. O 194 192 193 195

A contractor can buy trucks for P950,000 each or rent them for P1,500 per truck. The truck has a salvage value of P100,000 at the end of its useful life of 5 years. The annual maintenance cost is P20,000 per truck. Using the annual cost method and 15% interest rate, determine the minimum number of days per year that each truck must used to warrant its purchase. O 194 192 193 195

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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