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In your construction business, you are planning to purchase a truck which costs $45,000 and have a variable cost that starts at $15,000 the first
In your construction business, you are planning to purchase a truck which costs $45,000 and have a variable cost that starts at $15,000 the first year and increases by $2,000 per year. Assume that the estimated market value at the end of five years is $9,000 and the interest rate is %10. What is the equivalent annual cost of owning and operating the truck?
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