Calculate the annual fuel savings

Assignment Help Financial Management

Reference no: EM131180350

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 $4.00 per gallon.

Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 15,000 miles per year

Reference no: EM131180350

Questions Cloud

Explain how the moral hazard problem might arise : explain how the moral-hazard problem might arise. Explain how the adverse selection problem might arise.- Life insurance.

Create continuous improvement of safety strategies : Describe what you would do to create continuous improvement of safety strategies, structures, and policies.

Did bp use a proactive or reactive strategy : For your individual work, write a one - two page paper that answers the following questions: Consider the BP oil spill that spawned a heavy public relations campaign after beaches were closed and wildlife was affected. Did BP use a proactive or react..

Determine the marketing communications strategy used : Evaluate marketing research tools involved in the marketing process. Formulate competitive market entry strategies based on analysis of global markets that comply to initiatives in the health care industry.

Calculate the annual fuel savings : 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). Calculate ..

Equivalent annual annuity for each machine : The Perez Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine A costs $10 million but realizes after-tax inflows of $4 million per year for 4 yea..

Reduce consumers incentive to purchase the extended warranty : What signal does the fact that the manufacturer offers this warranty send to potential consumers about laptop quality?- Does this reduce consumers' incentives to purchase the extended warranty?

What is the exact height of a brick wall : What is the exact height of a brick wall that is 44 courses high when three courses of brick plus their three mortar joints are 8 inches (203.2 mm) high?

User Account

All Pages