Calculate the annual fuel saving

Assignment Help Financial Management
Reference no: EM131986651

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 $4.20 per gallon.

Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 17,000 miles per year. (Round your answers to 2 decimal places, e.g., 32.16.) Fuel savings

Truck gallons per year ?

Car gallons per year?

Reference no: EM131986651

Questions Cloud

What are the new innovation today in the given area : Microprocessor: Discuss what are the new innovation today in this area and what effect this area have on the computer field.
Challenge facing management of health : What is an important challenge facing management of health care organizations today, and how would you go about addressing it? Explain.
Propose a course of action for smith company that is ethical : He is considering recording this year some revenue on account that Smith Co. will earn next year from a large delivery.
Implemented to eliminate cultural practice : Describe why the interventions you identified in part 2 have been successful or unsuccessful?
Calculate the annual fuel saving : 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.
Discuss the social responsibility of ethical healthcare : 1. Discuss the "social responsibility" of ethical healthcare.
Major challenges facing long term care facilities today : You are a long term care facility administrator. Identify three (3) major challenges facing long term care facilities today.
How does the colleges policy compare with yours : How does the College's policy compare with yours? - Which policy is more strict? Why? - What changes would you recommend to the College's policy?
How many days would it take from the time of his deposit : How many days would it take from the time of his intial deposit of 900 for the account to reach 1000?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the npv for each of the projects

Using 14% of the cost of capital calculate the NPV for each of the projects shown in the following table and indicate whether or not each is acceptable.

  Using worksheet or tax return schedule

Based on the above information, complete Form 1120 Schedules M-1, M-2. Present your answer using a worksheet or tax return schedule.

  Firm fund investment opportunity with issue of junior debt

Wolverine Software has just completed an R&D project that required borrowing senior debt from a bank. The bank has been promised a repayment of $140 million. Could the firm fund the investment opportunity with an equity issue? Could the firm fund the..

  According to the? dividend-discount model

Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 11.3% per year thereafter until the 6th year.? Thereafter, growth will level off at 2.4% per year. According to the? dividend..

  Price you would be willing to pay for share of the stock

If you require a 14% rate of return to invest in the stock, what is the maximum price you would be willing to pay for a share of the stock?

  Assigned discount rate

Bloomfield Tires has assigned a discount rate of 14.4 percent to a new project that has an initial cost of $229,000 and cash flows of $74,300, $128,700, and $89,500 for Years 1 to 3, respectively. What is the net present value of this project?

  Proposed cost-saving device has an installed cost

A proposed cost-saving device has an installed cost of $680,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The device has an estimated Year 5 salvage value of $75,000. What level o..

  What are the stages in the capital budgeting process

What are the stages in the capital budgeting process? Why do managers want to minimize the cash conversion cycle?

  How much should you be willing to pay for bond today

Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. How much should you be willing to pay for Bond X today?

  What is arithmetic average return-geometric average return

What is the arithmetic average return over the 10-year period? What is the geometric average return over the 10-year period? If you invested $100 at the beginning, how much would you have at the end?

  What is the size of your monthly payment

What is the size of your monthly payment?

  What is the weighted average cost of capital for firm

What is the WACC (weighted average cost of capital) for this firm? What level of risk (your opinion) might this combination of capital outlay present to firm,

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