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A contractor has to choose one of the following alternatives in performing earthmoving contracts. Buy a heavy-duty truck for $35,000. Salvage value is expected to

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A contractor has to choose one of the following alternatives in performing earthmoving contracts. Buy a heavy-duty truck for $35,000. Salvage value is expected to be $8,000 at the end of the vehicle's 7-year depreciable life Maintenance is $2, 500 per year Daily operating expenses are $200. Hire a similar unit for $550 per day. Based on a 10% after-tax rate of return, how many days per year must the truck be used to justify its purchase? (Based your calculations on straight-line depreciation and a 40% income tax rate)

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