Private practice needs van to carry crew and equipment

Assignment Help Business Economics

Reference no: EM13896660

A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3577 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a used van for $5686 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1034. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?

Reference no: EM13896660

Questions Cloud

The demand function for firms product : The demand function for a firm’s product is Q = P!3 . The firm’s marginal cost of production is constant at MC(Q) = 12. Calculate the elasticity of demand, as a function of Q. Using your answers to (a) and (b), what is the firm’s profit-maximizing ma..

Stability of european monetary system exchange rates : Why might European Monetary System provisions for the extension of central bank credits from strong-to weak-currency members have increased the stability of European Monetary System exchange rates?

Suppose the income elasticity of demand : Suppose the income elasticity of demand for visits is +1.4. A consumer was spending $157 on visits and her income doubles. She will now spend $____.

Suppose that firms fixed proportion function : Suppose that a firm's fixed proportion function is given by q = (min{k,l})^.5. write the short run maximimization problem and derive the 1st order condition. If the wage is w=1 and the price of output is p=4, how much labor will the firm demand in th..

Private practice needs van to carry crew and equipment : A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3577 per year, paid at the beginning of each year, in which case maintenance is provide.

Average annual percentage change in the real exchange rate : Over the next twenty years, the average overall rate of inflation in Mexico is expected to be 8% per year, while in the United States the overall rate of inflation is expected to average 2% percent per year. Then what would you expect the average ann..

Consumers valuation of the good : If a producer offers a price that is below a consumer's valuation of the good, the consumer:

Calculate the profit-maximizing price per burger : In the fake country of Oz there is only 1 burger joint, BamaDonalds; it can produce burgers at a constant average cost and marginal cost of $2 per burger. Demand for burgers in Oz is represented by this demand curve: Q = 40 - P. Calculate the profi..

Use the long-run model of a small open economy : In September 1995, Patrick Buchanan, a Republican candidate for U.S. president, proposed a 10 percent tariff on Japanese imports to the United States, a 20 percent tariff on Chinese imports to the United States, and an unspecified “social” tariff on ..

User Account

All Pages