You are considering purchasing a dump truck. the truck will cost $75,000 and have operating and maintenance costs that start at $18,000 the first year and increases by $2,000 per year. assume that the salvage value at the end of five years is $22,000 and interest rate is 12%. what is the equivalent annual cost of owning and operating the truck?

Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken