What is the cost per mile to own and operate this vehicle

Assignment Help Finance Basics

Reference no: EM13260061

An electric automobile can be purchased for $40,000. The automobile is estimated to have a life of 6 years with annual travel of 15,000 miles. After three years, a new set of batteries will have to be purchased at a net cost of $3,000. Annual maintenance of the vehicle is estimated to cost $500 per year. The cost of recharging the batteries is expected to increase your monthly electric bill by $25. The vehicle can be sold for $5,000 at the end of 6 years. If MARR is 12% per year compounded annually, what is the cost per mile to own and operate this vehicle?

Reference no: EM13260061

Questions Cloud

What is the maximum speed attained by the object : A toy of mass 0.155 kg is undergoing simple harmonic motion (SHM) on the end of a horizontal spring with force constant 305 N/m. What is the maximum speed attained by the object during its motion?

What would a fully-taxable corporate bond have to yield : What would a fully-taxable corporate bond have to yield in order to produce the same after-tax return as the 5% municipal bond? Show work. Express your answer as a percentage rounded to two decimal places.

Discuss the capital budgeting process : Discuss the capital budgeting process and the inputs that are used in capital budgeting.

Determine the acceleration of the system : Two blocks, m1=1.0kg and m2=2.0kg are connected by a light string over a pulley. what is the acceleration of the system

What is the cost per mile to own and operate this vehicle : The vehicle can be sold for $5,000 at the end of 6 years. If MARR is 12% per year compounded annually, what is the cost per mile to own and operate this vehicle?

Calculate the dollar cost of each of the proposed plans : Calculate the dollar cost of each of the proposed plans for obtaining an initial loan amount of $100,000.

Compute he speed of the resulting ball of clay : A 20 g ball of clay traveling east at 8.0 m/s collides and sticks togethor with a 20 g ball of clay traveling north at 8.5 m/s. What is the speed of the resulting ball of clay

What is the oscillators maximum speed : A 300 g oscillator has a speed of 95.4 cm/s when itsdisplacement is 3.0 cm, What is the oscillator's maximum speed

What effective annual rate will the firm pay for financing : What effective annual rate will the firm pay for financing with commercial paper, assuming that it is rolled over every 90 days throughout the year.

User Account

All Pages