PCC Value Design Engineering Cashflows & Equivalent Annual Cost Worksheet
Question Description
Please solve the question using Excel file with appropriate formulas. Do not skip steps and please make everything clear and obvious.
A local county is considering purchasing some dump trucks for the trash pickups. Each truck will cost $55,000 and have an operating and maintenance cost that starts at $18,000 the first year and increases by $3,000 per year. Assume the salvage value is $12,000 at the end of 5 years and the interest rate is 10% per year compounded monthly. Please find the equivalent annual cost of owning and operating each truck and cost per mile of the truck if the truck is driven 20,000 miles per year
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