Local county government is considering purchasing some dump trucks for trash pickups. each truck will cost $55,000 and have an operating and maintenance cost that starts at $18,000 the first year and increases by $3,000 per year thereafter. assume a salvage value of $12,000 at the end of 5 years and the interest rate is 10%. what is the equivalent uniform annual cost of owning and operating each truck?

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?