What is the equivalent annual cost of owning the truck

Assignment Help Econometrics
Reference no: EM13203178

A delivery truck costs $30,000 and has a salvage value of $5,500 after 6 years. Maintenance and operating costs are $8,500 for the first year and are expected to increase at 6% per year. What is the equivalent annual cost of owning and operating the truck for 6 years? Use 5.0% for the interest rate.

Reference no: EM13203178

Questions Cloud

What affect on peoples interest and enthusiasm : What is internal time and management churning (frequent turn-over of management) tends to have what affect on peoples interest and enthusiasm for proposed changes
What is the equivalent equal annual cost of the fuel : Gasoline costs $0.95 per liter and will increase at 6% per year. At a fuel economy of 9km/liter, what is the present worth cost of fuel for five years of driving 30,000km per year? Use 6.2% interest. What is the equivalent equal annual cost of the..
What percentage of adult women can fit through the door : Doorway Height: The gulfstream 100 is an executive jet that seats six, and has a doorway height of 51.6 in.
Analyzing sales performance : Summarize the findings from your analysis. Provide a chart, graph,or table to illustrate your analysis. The analysis should explain the area you analyzed and point out what you discovered.
What is the equivalent annual cost of owning the truck : A delivery truck costs $30,000 and has a salvage value of $5,500 after 6 years. Maintenance and operating costs are $8,500 for the first year and are expected to increase at 6% per year. What is the equivalent annual cost of owning and operating t..
How to find the maximum error of estimate : Given a level of confidence of 99% and a population standard deviation of 4, what other information is necessary: (A) To find the Maximum Error of Estimate (E)?
How far is it from first base to dead center field : The distance from home plate to dead center field in a certain baseball stadium is 403 feet. A baseball diamond is a square with a distance from home plate to first base of 90 feet. How far is it from first base to dead center field?
How can the falling us dollar impact your travel expenses : What are freely floating exchange rates all about, and how do they work How can the falling U.S. dollar impact your travel expenses Why would a cheap dollar relative to other nations' currencies be good or bad for U.S. trade
Use the midpoint rule with the given value of n : Use the Midpoint Rule with the given value of n to approximate the integral. Round the answer to four decimal places.

Reviews

Write a Review

Econometrics Questions & Answers

  Describe why to ignore the time value of money

Normal people are willing to pay $250 and their desire to purchase doesn't vary with time. Ignore the time value of money and compute the optimal pricing scheme of the iphone. Assume that there are equal numbers of each customer type and the MC of..

  How much would a square-foot community college cost

Today a proposed community college is estimated to cost $34.6 million, which is $127 per square foot of space multiplied by 272,310 square feet. If construction cost are expected to increase by 19% per year because of high demand for construction.

  What is domain of profitable demand during a month

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is$131.50. The price charged will ..

  What is the required rate of return on collectibles stock

Collectibles Corp. has a beta of 2.5 and a standard deviation of returns of 20%. The return on the market portfolio is 15% and the risk free rate is 4%. According to CAPM, what is the required rate of return on Collectible's stock

  What is highest price that a vendor would pay for a permit

Consider a city that has a number of hot dog stands operating throughout the downtown area. Suppose that each vendor has a marginal cost of $1.50 per hot dog sold and no fixed cost. Suppose the maximum number of hot dogs that any one vendor can se..

  What is the equivalent annual income

An income-producing property has an annual gross rent income of $1,000,000 and annual expenses of $300,000. Every 5 years, the parking lot need to be re-surfaced at $60,000 and every 10 years, the rood will have to be maintained at $40,000.

  How much economic profit will each medallion holder earn

Now suppose the city council of Metropolis decides to curb congestion in the downtown area by limiting the number of taxis to 6. Applicants participate in a lottery and size winners get a medallion (a permanent license). What is the new equilibriu..

  Calculate the overall saving rate in sonrisa

The table below shows the probability that a mother in a given part of the income distribution (given by the row) will have a daughter in a given part of the income distribution (given by the column). So, for example, the daughter of a women with ..

  What is the new optimal quantity for the firm to produce

In the long-run, outsiders enter the market since they have observed the existing firms are profitable. As more and more firms in the market, the market price is reduce to P = 12. Assuming the MC = 3 + 3Q,

  What is the market interest rate

Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing next year. The intertemporal budget constraint for Seth is given by the equation C2 = 120 - 1.2C1 where C1 = possible consumption in year 1 and C2 =..

  What is the first action you would take as the president

Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable..

  Find each players dominant strategy

In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If both players choose strategy A, each earns a payoff of $500. If both players choose strategy B, each earns a payoff of $100.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd