An Investor Wants to Invest in the Trucking Business

Multiple Choice

An investor wants to invest in the trucking business. To run this business, 10 trucks should be acquired. The market price of a truck is $50 000. It is also necessary to pay $390 000 per year as wages to the truck drivers. Vehicle repair and maintenance costs are $10 000 per year. What is the annual worth of the project's costs at 5% MARR over a 10-year period?

A) $400 000
B) $406 475
C) $454 750
D) $464 750
E) $551 800