Its my 3 time and i have last chance please answer this correctly!!! ( wrong answer will be dislike) A pipeline contractor can purchase a needed truckfor $42,000. Its estimated life is 6 years, and it hasno salvage value. Maintenance is estimated to be$3,100 per year. Operating expense is $60 perday. The contractor can hire a similar unit for $190per day. MARR is 7%.a. How many days per year must the truck'sservices be needed such that the two alternativesare equally costly?b. If the truck is needed for 180 days/year, shouldthe contractor buy the truck or hire the similarunit? Determine the dollar amount of savingsgenerated by using the preferred alternativerather than nonpreferred.

here we calculate the following questions by using the given data , so the calculation of the…

A pipeline contractor can purchase a needed truck for $42,000. Its estimated life is 6 years, and it has no salvage value. Maintenance is estimated to be $3,100 per year. Operating expense is $60 per day. The contractor can hire a similar unit for $190 per day. MARR is 7%.

A pipeline contractor can purchase a needed truck for $42,000. Its estimated life is 6 years, and it has no salvage value. Maintenance is estimated to be $3,100 per year. Operating expense is $60 per day. The contractor can hire a similar unit for $190 per day. MARR is 7%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Its my 3 time and i have last chance please answer this correctly!!!

( wrong answer will be dislike)

A pipeline contractor can purchase a needed truck
for $42,000. Its estimated life is 6 years, and it has
no salvage value. Maintenance is estimated to be
$3,100 per year. Operating expense is $60 per
day. The contractor can hire a similar unit for $190
per day. MARR is 7%.
a. How many days per year must the truck's
services be needed such that the two alternatives
are equally costly?
b. If the truck is needed for 180 days/year, should
the contractor buy the truck or hire the similar
unit? Determine the dollar amount of savings
generated by using the preferred alternative
rather than nonpreferred.

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