Review problem related to the cars

Reference no: EM131774847

Question: Compare two cars A and B. The initial cost of Car A is $500 more than Car B. However Car A consumes 0.01 less gallons/mile compared to B. Given that B's salvage value is $100 smaller than A's after an expected useful life of 8yrs for both cars. How many more miles of use per year does A become more preferable to B. Assume a fuel cost of $1.70/gallon for the entire duration.

Reference no: EM131774847

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