Estimate costs of ownership over the next five years

Reference no: EM132162140

Question - My friend drives a 2010 Nissan Altima with 105,500 miles. Assuming he could drive this car for up to 5 more years and then sell, calculate the equivalent uniform annual cost of ownership over the next 5 years (Value car at $5,500)

1. Estimate 6 costs of ownership over the next 5 years. He knows his car is aging, so at least two of your cash flows need to be gradient cash flows. Explain each of your estimates (e.g. if you estimate a salvage value, explain why). There are many sources of information about costs for cars (library, internet, local mechanics,. . . ). The more specific your information is to this car, the better.

2. Compute his EUAC, showing work.

3. Now perform a sensitivity analysis by considering if one of the factors you have estimated was either 20% higher than you estimated or 20% lower than you estimated. How will this affect your EUAC.

4. Identify one replacement options and calculate the same set of costs of ownership for that car.

5. Determine if and when you would recommend him to replace his car.

Reference no: EM132162140

Questions Cloud

How would value differ where you have increase in access : Prior to engaging in this discussion, read Chapters 1 and 2 in the text and review any relevant Instructor Guidance. It is suggested that you also review.

Discuss the importance of a continge ncy plan : Discuss the importance of a contingency plan and indicate which components are typically addressed in a contingency plan.

Define leadership and situation factors : Define leadership and situation factors included in Fiedlers Contingency Model. What are the primary predictions of the model?

Assess customer demand : If a tooth whitening gel manufacturer wishes to assess customer demand which is a "how much or how many" question, why wouldn't a quantitative approach

Estimate costs of ownership over the next five years : Estimate 6 costs of ownership over the next 5 years. He knows his car is aging, so at least two of your cash flows need to be gradient cash flows

What potential solutions would you suggest to your director : What potential solutions would you suggest to your director that might overcome the demographic shift? Analyze economic theories that are germane.

Define understanding of bona fide occupational qualification : There exist many fundamental legal concerns surrounding recruiting for US companies and the overall hiring processes within organizations.

Describe the role of the various it professionals : Explain the role that information technology plays in each of these businesses and describe the role of the various IT professionals involved in this case.

What are real organizations doing about the given : To help with the development of your paper look at the Conceptual Model of HR. Choose one area you find interesting. Based on your own experiences and readings.

User Account

All Pages