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  3. 2.a company buys a pickup truck for $25,000. each

2.A company buys a pickup truck for $25,000. Each year the truck is in service...

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Accounting

2.A company buys a pickup truck for $25,000. Each year the truck is in service the trade in value decreases by 20%. Maintenance on the truck will run $2,000 per year while increasing by 15% each year it is in service. The company uses an MARR of 12%. Find the Annual Equivalent Cost for the second year.

A. $9386.87

B. $5325.30

C.$7245.30

D.$6325.30

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