Florida General Contractor Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

Question: 1 / 400

If a new truck costs $20,000 cash, has a maintenance cost of $100 per month, and fuel costs of $0.16 per mile driven (20,000 miles per year) with a salvage value of $5,000 after 5 years, what is the total cost of the truck over its lifespan?

$25,000

$24,000

$32,000

To determine the total cost of the truck over its lifespan, we need to calculate several factors including the initial purchase price, maintenance costs, fuel costs, and the salvage value at the end of five years.

1. **Initial Cost**: The truck costs $20,000 cash.

2. **Maintenance Costs**: The maintenance cost is $100 per month. Over one year, that equals $1,200 ($100 x 12). Over five years, the total maintenance cost will be $1,200 x 5 = $6,000.

3. **Fuel Costs**: The fuel cost is $0.16 per mile driven, and the truck will be driven 20,000 miles per year. This results in an annual fuel cost of $3,200 ($0.16 x 20,000). Over five years, this totals $3,200 x 5 = $16,000.

4. **Salvage Value**: After five years, the salvage value of the truck is $5,000.

Now, we need to calculate the total cost over the lifespan, which includes the initial purchase, total maintenance, and total fuel costs, minus the salvage value:

- Total Costs = Initial Cost +

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$30,000

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