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A company owns a fleet of trucks and operates its own maintenance shop. A certain type of truck, normally used for 5 years, has a

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A company owns a fleet of trucks and operates its own maintenance shop. A certain type of truck, normally used for 5 years, has a first cost of 4, 500,and a terminal salvage value of 500. Maintenance costs are 300 the first year and increase by 200each year. Assuming a discount rate of 10% find the equivalent annual cost of owning and maintaining the truck. (Ans.1,770)

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