Find the equivalent uniform annual cost

Reference no: EM131806830

Question: For the data in Problem assume that the 5000, 10,000, and 15,000 mileage values are, respectively, pessimistic, most likely, and optimistic estimates. Use a weighted estimate to calculate the equivalent annual cost.

Problem: The purchase of a used pickup for $9000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $990 per year if the truck is driven 10,000 miles. The salvage value after 5 years of use drops about 8% per mile. Find the equivalent uniform annual cost if the interest rate is 8%. How much does this change if the annual mileage is 15,000? 5000?

Reference no: EM131806830

Questions Cloud

Indianapolis-type racing car : A group of businessmen formed a partnership to buy and race an Indianapolis-type racing car

Discuss the consolidation elimination entries : Rounded to the nearest dollar, the consolidation elimination entries at 30 June 2017 in relation to the sale of plant are which of the following

Prepare a schedule of estimated borrowings of principal : Prepare a schedule of estimated borrowings and repayments of principal and interest for 2008 and its quarters

Determine the pessimistic rates of return : A heat exchanger is being installed as part of a plant modernization program. It costs $80,000, including installation, and is expected to reduce the overall.

Find the equivalent uniform annual cost : The purchase of a used pickup for $9000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost.

Explain how and why you have designed your program : the program needs to read the radius of a circle from the user - You program should then display the circle on the screen in a random location

Differences between differentiation strategy-cost leadership : What are the differences between differentiation strategy and cost leadership and how they differ in their impact on performance?

What are the effects on net income : At the end of three months, the spot rate is $1.37 per euro, and Quality delivers the merchandise, collecting 400,000 euros. What are the effects on net income

Discuss what happens to the unit contribution margin : what happens to the Unit contribution margin, contribution margin ratio, and the break even in units

User Account

All Pages