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Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $115,000 to provide short-haul earthmoving services. The company sold it today for $45,000.
Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $115,000 to provide short-haul earthmoving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,500 per year. A complete overhaul (one time payment) at the end of year 4 cost an extra $3600. Calculate the annual cost of the truck at 8% per year interest.
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