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A pipeline contractor can purchase a needed truck for $42,000. Its estimated life is 6 years, and it has no salvage value. Maintenance is estimated
A pipeline contractor can purchase a needed truck for $42,000. Its estimated life is 6 years, and it has no salvage value. Maintenance is estimated to be $1,900 per year. Operating expense is $60 per day. The contractor can hire a similar unit for $140 per day. MARR is 7%. How many days per year must the trucks services be needed such that the two alternatives are equally costly? Determine the dollar amount of savings generated by using the preferred alternative rather than the nonpreferred.
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