Calculate the total cost of ownership per mile

Assignment Help Financial Management

Reference no: EM131577960

You are considering two options. First option is an electric engine powered car, and it would take $30,000 to purchase the car. Besides, you need to change battery every 6 years. The cost of new battery is $3,000. The interest rate is 12% per year. The second option is a gasoline engine car, which cost $20,000 initially. The annual maintenance cost for gasoline engine car is $3,000, and the fuel cost per mile is so 16. On the other hand, it cost $0.04/mile for electric powered car, and annual maintenance cost is $5000. At the end of 12 years, the electric powered car can be sold for $8,000, and the gasoline powered car can be sold for $3,000. Under the assumption that you do not need to change the battery before selling the electric car at the end of year 12, and each car is driven for 15,000 miles/year.

a. Calculate the total cost of ownership per mile for each of the car?

b. Which car do you prefer to buy if DN alternative does not exist?

Reference no: EM131577960

Questions Cloud

Develop state table of deterministic finite-state automaton : Given the state table of a deterministic finite-state automaton and a string, decide whether this string is recognized by the automaton.

Prepare the journal entries to record depreciation : On September 30, 20x3, Sternberg Company sold office equipment for $12,000. Prepare the journal entries to record 20x3 depreciation and sale of the equipment

Find the equivalent annual cost : At an interest rate of8% per year, find the equivalent annual cost between years 3 through 10.

What is the mealy machine : Given the state table of a Mealy machine and an input string, produce the output string generated by the machine.

Calculate the total cost of ownership per mile : Calculate the total cost of ownership per mile for each of the car? Which car do you prefer to buy if DN alternative does not exist?

Write an essay that focuses on the truths - rip van winkle : Write an essay that focuses on the truths presented in the short story Rip Van Winkle

Make a state table of a moore machine : Given the state table of a Moore machine and an input string, produce the output string generated by the machine.

What was right yesterday might be wrong today : The point of the Moral Relativist would be that what was right yesterday might be wrong today. So, what would you propose, and how would you defend it?

Discuss properties of a context-free grammar : Given the productions of a context-free grammar and a string, produce a derivation tree for this string if it is in the language generated by this grammar.

User Account

All Pages