# Question: the initial cost of a pickup truck is 10782 and...

###### Question details

The initial cost of a pickup truck is $10782 and will have a
salvage value of $3561 after five years. Maintenance is estimated
to be a uniform gradient amount of $171 per year, with zero dollar
for first year maintenance. The operation cost is estimated to be
$0.38 per mile for 176 miles per month. If the interest rate is
12%, what is the **annual equivalent cost (AEC)** for
the truck?