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A company buys a pickup truck for $25,000. Each year the truck is in service the trade in value decreases by 20%. Maintenance on the

A company buys a pickup truck for $25,000. Each year the truck is in service the trade in value decreases by 20%. Maintenance on the truck will run $2,000 per year while increasing by 15% each year it is in service. The company uses an MARR of 12%. Find the Annual Equivalent Cost for the second year.
$8756.87
$5325.30
$7245.30
$6325.30

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