An independent over-the-road (OTR) truck driverowner paid $98,000 for a used tractor-trailer. The salvage value of the
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An independent over-the-road (OTR) truck driverowner paid $98,000 for a used tractor-trailer. The salvage value of the rig after five more years of use is expected to be $66,000. The operating cost is
$0.60 per mile and the base mileage rate (revenue)
is $0.71 per mile.
a. How many miles per year must the owner drive just to break even at an interest rate of 10% per year?
b. If the owner drives 550 miles per day, howmany days per year will be required for breakeven?
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Related Book For 
Basics Of Engineering Economy
ISBN: 9780073376356
2nd Edition
Authors: Leland T. Blank, Anthony Tarquin
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