The equivalent uniform annual cost is $4,500 with a 10,000 mileage and $5,510 with 15,000 mileage.
<h3>What does mileage cost?</h3>
The cost per mileage depends on the total miles traveled especially in a given period of time. The distance is multiplied by the mileage rate to obtain the mileage cost.
<h3>Data and Calculations:</h3>
Cost of used pickup van = $9,000
Costs of oil, tires, and repairs = $990
Fuel costs per year for 10,000 miles = $990
Fuel costs per year for 15,000 miles = $1,495 ($990/10,000 x 15,000).
Salvage value after 5 years drops by 8% per mile per year
Deprecation expenses per year = $1,800 ($9,000/5)
Interest rate = 8%
Annual interest = $720
Equivalent uniform annual cost for 10,000 mileage = $4,500 ($1,800 + $990 + $990 + $720)
Equivalent uniform annual cost for 15,000 mileage = $5,510 ($1,800 + $1,495 + $1,495 + $720)
Thus, the equivalent uniform annual cost is $4,500 with a 10,000 mileage and $5,510 with 15,000 mileage.
Learn more about vehicle mileage calculations at brainly.com/question/24787693
