An electrical contractor has in his service a fleet of 10 vans of varying ages. With a view to standardizing his fleet with a single make, he wishes to know what the annual cost, at the economic life, will be for a van with the following characteristic:

All cost is in constant dollars. His opportunity cost of capital before taxes is 20 percent. A before-tax analysis is required

\begin{tabular}{|r|c|c|c|c|} \hline Life & First Cost & Operational Cost & Maintenance Cost & Salvage Value \\ \hline 0 & 13.200 & & & \\ 1 & & 2.160 & 880 & 9.080 \\ 2 & & 2.160 & 1.980 & 7.340 \\ 3 & & 2.160 & 3.080 & 5.600 \\ 4 & & 2.160 & 4.180 & 3.860 \\ 5 & & 2.160 & 5.280 & 2.120 \\ 6 & & 2.160 & 6.380 & 380 \\ \hline \end{tabular}