Determine which model is best choice for natasha

Assignment Help Econometrics

Reference no: EM13188796

Natasha Gurdin is debating which of two models of a car to buy ( A or B ), being indifferent with regard to their technical Performance. She has been told that the average monthly cost of owning Model A, based on LCC analysis, is $500
a) Using the following Data for Model B, Calculate its LCC and determine which model is best choice for Natasha

purchase Price $23000
Life Expectancy 4 years
Release VAlue $13000
Maintenance $1100 per year
Operational Cost $90 per month
car Insurance $1400 per year
MEan Time between Failures 14 months
Repair Cost per failure $650

b) Develop a general Model that can be used to calculate LCC for a Car.

Reference no: EM13188796

Questions Cloud

Determine the 4 equal annual withdrawals : Determine the present worth of 5 annual deposits of $1,200 at the end of years 1 through 5, followed by 4 equal annual withdrawals of $700 at the end of years 4 through 7. Note that both years 4 and 7 will have a depsoit and a withdrawal. Interest..

How many months can he make these withdrawals : Daniel deposits $20,000 into an account earning interest at 6 percent per year compounded quarterly. He wishes to withdraw $400 at the end of each month. For how many months can he make these withdrawals

How long will it take them to have a total of account : Mario and Claudia deposit $100 into their joint account at the end of each month. If their account earns 7 percent/year/year/month (7 percent per year compounded quarterly), how long will it take them to have a total of $15,000 in their account

What capital expenditure can be justified to build the water : The Annual Benefits may be assumed to be one tenth of the decade benefits. The O & M Cost of the project is estimated to $15000 per year. Assume a 50 Year Analysis Period with no net project salvage Value. Purpose 1 decade 2 decade 3 decade 4 deca..

Determine which model is best choice for natasha : Natasha Gurdin is debating which of two models of a car to buy ( A or B ), being indifferent with regard to their technical Performance. She has been told that the average monthly cost of owning Model A, based on LCC analysis, is $500

Find the absolute minimum and maximum values of the function : Find the absolute minimum and maximum values of the function f(x,y) = 1+4x-5y on the closed triangular region with the vertices (0,0),(3,0), and (0,3).

Write equations of the tangent plane : The surface is defined by the equation x^2 - 2y^2 + z^2 +yz = 2. Write equations of the tangent plane and normal line to this surface at the point P(2, 1, -1)

What is volume of production to minimize production cost : A company makes a piece whose income is 100-0.02n marginal and total cost is $0.0002n^{2} 10000$ . Where n is the volume of production. What is the volume of production to minimize unit production cost, maximize profit and break even point

Find the maximum rate of change of the function : Find the maximum rate of change of the function f(x,y,z) = (x^2 + y^2 + z^2)^0.5 at the point P(1,2,-2) and the direction in which it occurs.

User Account

All Pages