Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 3

An independent over-the-road (OTR) uck driver-owner paid $98,000 for a used tractor-trailer. The salvage value of the rig after five more years of use is expected to be $66,000. The operating cost is $0.60 per mile and the base mileage rate (revenue) $0.71 per mile.
a. How many miles per year must the owner drive just to break even at an interest rate of 10% per year
b. If the owner drives 550 miles per day, how many days per year will be required for breakeven