Determine the more economical choice

Assignment Help Business Management

Reference no: EM13971556

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: EM13971556

Questions Cloud

The paper on conflict and poverty in a world where boundarie : The paper on Conflict and Poverty in a world where boundaries and borders have blurred, and where seemingly distant threats can metastasize into immediate problems, the fight against global poverty has become a fight for global security.

Substantive tests for plant assets : Pierce, an independent auditor, was engaged to audit the financial statements of Mayfair Construction Incorporated for the year ended December 31, 20X3.

Research about lactose intolerance : Write 6 pages research about lactose Intolerance

Which company has an absolute borrowing advantage : A Brazilian Software company (KondZilla) plans to expand its business to the U.S. market and requires USD$15 million to fund the expansion. The Brazilian company faces the following borrowing opportunities:

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

Prepare a statement of cash flows using the direct method : Prepare a statement of cash flows using the indirect method. Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.

Amount of sue quarterly payments : If the first payment is due in three months (one quarter) after purchasing the car, what will be the amount of Sue's quarterly payments on the loan?

Write about anemia : Write about anemia, Please include the following in your paper: body system with name of disease, etiology, pathophysiological process, clinical manifestations and complications, diagnostics

Determining the special depreciation methods : Differentiate between the decreasing-charge depreciation methods and the special depreciation methods, and suggest the method that would result in the highest depreciation during the first year of operations.

User Account

All Pages