Buying taxis with diesel engines instead of gasoline engines

Assignment Help Financial Management
Reference no: EM13875237

A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The cars average 50,000 km a year

DIESEL:

Vehicle Cost: 13,000

Useful years in life: 3

Fuel cost per liter: 48 cents

Mileage in km/liter: 35

Annual Repairs: 300

Annual Insurance premium: 500

End of useful life resale value: 2,000

GASOLINE:

Vehicle Cost: 12,000

Useful years in life: 4

Fuel cost per liter: 51 cents

Mileage in km/liter: 28

Annual Repairs: 200

Annual Insurance premium: 500

End of useful life resale value: 3,000

Use an annual cash flow analysis to determine the more economical choice if interest is 6%

Reference no: EM13875237

Questions Cloud

What do we know about global warming : What do we know about global warming? What may be the impacts of global climate change? These issues will be addressed in this assignment.
Policy implementation mental illness : Policy Implementation Mental Illness
Analysis period and no salvage value : A steam boiler is needed as part of the design of a new plant. The boiler can be fired by natural gas, fuel oil, or coal. A decision must be made on which fuel to use. An analysis of the costs shows that the installed cost, with all controls, would b..
Identify and list the deposits in transit : Identify and list the deposits in transit at the end of September. Identify and list the outstanding checks at the end of September. Prepare bank reconciliation for September. Give any journal entries that the company should make as a result of the b..
Buying taxis with diesel engines instead of gasoline engines : A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The cars average 50,000 km a year. Use an annual cash flow analysis to determine the more economical choice if interest is 6%
Determining the mass of the rocket : A 0.2-lb model rocket is launched vertically from rest at time t = 0 with a constant thrust of 2 lb for one second and no thrust for t > 1 s. Neglecting air resistance and the decrease in mass of the rocket, determine
Fasb enter into with the iasb : What agreement did the FASB enter into with the IASB? Why did it enter into this agreement?
Find an average price earnings ratio for the food industry : Find an average price/earnings (P/E) ratio for the specialty retail food industry. (Note: you cannot do this for Kudler as you do not have the firm's current market stock price.) Find an average price/earnings (P/E) ratio for the food retail indust..
Would a new species move in : How would these organisms survive if the temperature warmed up this much ,Would they stay or move to a more suitable environment and Would a new species move in?

Reviews

Write a Review

Financial Management Questions & Answers

  Defined pension plan

The Baton Rouge Company compiled the following information for the current year related to its defined pension plan: Determine the amount of defined benefit cost for the current year to be reported in (a) net income and (b) other comprehensive income..

  A discount factor

A discount factor:

  Do you think the yield curve will change during this time

How do you think the yield curve will change during this time? Offer some logic or current reference(s) to support your answers.

  Chains in-house instead of purchasing them from supplier

A bicycle manufacturer currently produces 223,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2.20 a chain. If the company pays tax at a rate of 35% and the opportunity..

  Calculate the firms weighted average cost of capital

Given the following information, calculate the firm's weighted average cost of capital (WACC). Market value of common stock=$60 million; market value of preferred stock=$10 million, market value of debt=$30 million; cost of common stock=15%; cost of ..

  What is the total cost of training

The average turnover rate was 23% percent per year. The cost to recruit and train one new employee was $56,625. To address the turnover problem, the company developed a skills training program that averaged 80 hours per year per employee. What is the..

  Fullerton wine company is a retailer which sells

Fullerton Wine Company is a retailer which sells vintage wines. The company has established a policy of reordering inventory every 30 days.

  Savings account today that earns an annual interest rate

You placed $3722 in a savings account today that earns an annual interest rate of 19.72 percent compounded semi annually. How much will you have in this account at the end of five years? Assume that all interest received at the end of the period is r..

  Workers themselves can invent labor-saving machinery

According to Smith, social harmony comes from economic exchanges in which people act.  Which one of the following is a role for government that Smith saw as essential? The division of labor tends to be greatest in less economically developed countrie..

  What are the positive and negative treads for truvia

Have you ever heard of Truvia? What are the competitors to Truvia? Is Stevia just a fad or a long term product? What are the positive and negative treads for Truvia?

  Perpetual annual disbursement beginning

An investment of $100,000 is set up in a trust, earning 8% per year. Annual disbursements of $10,000 are made at the end of the first 10 years. If after 10 years the annual disbursements are adjusted so that they may be made indefinitely, the perpetu..

  Purchasing new home and need to borrow from mortgage lender

You are purchasing a new home and need to borrow $250,000 from a mortgage lender. The mortgage lender quotes you a rate of 6.25% APR for a 30-year fixed rate mortgage. The mortgage lender also tells you that if you are willing to pay two points, they..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd