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The initial cost of a pickup truck is $12940 and will have a salvage value of $4447 after five years. Maintenance is estimated to be
The initial cost of a pickup truck is $12940 and will have a salvage value of $4447 after five years. Maintenance is estimated to be a uniform gradient amount of $185 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.3 per mile for 277 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?
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