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4-5. Annual disbursements (other than driver's wages) for operation and main nance of certain trucks under particular operating conditions tend to increase $400 a year
4-5. Annual disbursements (other than driver's wages) for operation and main nance of certain trucks under particular operating conditions tend to increase $400 a year for the first 5 years of operation; first-year disbursements are $2,40 The first cost of a truck if $8,400. The estimated salvage value after 4 years $2,400; after 5 years it is $1,500. In the long run, it is estimated that income tax will be about the same with a 4-year or 5-year life. Using an i* of 10%, compare t equivalent uniform annual costs of a truck held for 4 years with one held for years. (Ans. 4 years, $5,085; 5 years, $5,094)
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