Ron is looking forward to purchase a good car

Reference no: EM13887681

Ron is looking forward to purchase a good car for himself. After a research he had found that Toyota Camry, Honda Accord, Ford Fusion fit into his budget and that he likes its specifications.

	Toyota Camry_[1]	Honda Accord_[2]	Ford Fusion_[3]
Investment	$22,055	$22,280	$22,975
Fuel Costs	$1,860	$1,966.4	$1,905.4
Maintenance	$264	$322	$372.8
Efficiency	$219	$0	$238.18
Insurance	$1,373	$1,216	$1,447
Market Value	$11,271	$12,280	$16,106

The above table shows the various costs related to product purchase and maintenance and also points out the market value.

The MARR is 10% and the useful period is 5 years and annual benefit for each car is $8,000. Ron wanted to take the car with the best benefit to cost ratio.

Reference no: EM13887681

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