Question
An independent over-the-road (OTR) truck driver owner paid $98,000 for a used tractor-trailer. The salvage value of the rig after five more years of use
An independent over-the-road (OTR) truck driver owner paid $98,000 for a used tractor-trailer. The salvage value of the rig after five more years of use is expected to be $66,000. The operating cost is $0.60 per mile and the base mileage rate (revenue) is $0.71 per mile. How many miles per year must the owner drive just to break even at an interest rate of 10% per year?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
