6. A contractor can buy dump trucks for P800,000.00 each(surplus) or rent them for P1,189 per truck perday. The truck has a salvage value of P100,000 at the end of its useful life of 5 years. Annual cost ofmaintenance is P20,000.00. If money is worth 14% per annum, determine the number of days per year atruck must be used to warrant the purchase of the truck.A. 200.B. 199C. 145D. 102

Name: 6. A contractor can buy dump trucks for P800,000.00 each(surplus) or
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Description: 6. A contractor can buy dump trucks for P800,000.00 each(surplus) or rent them for P1,189 per truck perday. The truck has a salvage value of P100,000 at the end of its useful life of 5 years. Annual cost ofmaintenance is P20,000.00. If money is wort

First we need to determine the Equivalent Annual Cost (AEC) of owning the truck. AEC is the cost of…

Answered: maintenance is P20,000.00. If money is…

Business

Finance

maintenance is P20,000.00. If money is worth 14% per annum, determine the number of days per year a ruck must be used to warrant the purchase of the truck. . 200 B. 199 C. 145 D. 102

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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