Small remodeling business has two work vehicles

Assignment Help Financial Management

Reference no: EM131069126

Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get 40 mpg; an upgraded truck will get 12.5 mpg. The cost of gasoline is $3.70 per gallon. Suppose you drive the truck 12,000 miles per year. How many miles would you have to drive the car before upgrading the car would be the better choice?

Number of miles

Reference no: EM131069126

Questions Cloud

How does mill define happiness : How does Mill define ‘happiness'? Are all pleasures the same or are some pleasures determined to be more valuable to a human life than others?

Returns for large-company stocks and treasury bills : Suppose we have the following returns for large-company stocks and Treasury bills over a six year period: Year Large Company US Treasury Bill 1 3.66 4.66 2 14.44 2.33 3 19.03 4.12 4 –14.65 5.88 5 –32.14 4.90 6 37.27 6.33 c-2 Calculate the observed ri..

Brief synopsis of the mixed methods studies : Return to your Literature Review and peruse the mixed methods studies you found for additional resources that pertain to your topic. Conduct additional searches through the Walden Library for relevant studies that either pertain directly to your t..

Small remodeling business has two work vehicles : Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The cost of gasoline is $3.70 per gallon. Suppose ..

How much will the company pay in separation costs : Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. Digby is planning to conduct exit interviews to learn more about how they can improve in processes and increase ..

Explain a situation that merits a business trip : Explain a situation that merits a business trip and argue for the necessity of an on-the-spot evaluation. In persuading my boss of the necessity of covering my trip expenses, I might point to the short time-frame I'm facing within which I'm required..

Measure of the portfolio if the risk-free rate : A portfolio generates an annual return of 14.5%, a beta of 0.7, and a standard deviation of 18.5%. The market index return is 16.5% and has a standard deviation of 26.0%. What is the M2 measure of the portfolio if the risk-free rate is 4%?

What ethical issues are presented by behavior : Allison operates a pizza establishment and has run into difficult economic times. Just when Allison feels that her business was finally going well, a new pizza place opens nearby. What torts has Allison committed? What defense(s) might she assert? Wh..

User Account

All Pages