taxi owr mate from his past records taxi whose purchase price when new is 60000 $ are as given below: year operating cost 1 10000 2 12000 he costs per year for operating 3 15000 4 18000 5 20000 After 2 years, the operating cost increasing by 6000 $ for each year, the resale value decreases by 10% of purchase price each year(Resale value decreases by 10% of capital cost), what is the best replacement policy? Cost of money is zero.

taxi owr mate from his past records taxi whose purchase price when new is 60000 $ are as given below: year operating cost 1 10000 2 12000 he costs per year for operating 3 15000 4 18000 5 20000 After 2 years, the operating cost increasing by 6000 $ for each year, the resale value decreases by 10% of purchase price each year(Resale value decreases by 10% of capital cost), what is the best replacement policy? Cost of money is zero.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

5.
A company is in need of a small vehicle to make deliveries. It is intending to choose between 2 options. One option is to buy a new 2 wheeler that would cost Rs.75000/- and serve for 8 years, The other alternative is to buy a second hand vehicle for Rs.45000/- now that could serve the firm for 4 years. Thereafter the firm can buy another second hand vehicle for Rs.40,000/- that lasts for another 4 years. The firm can utilize the WDV of the vehicle's whenever they are discarded. The firm pay 30% tax and is allowed to claim depreciation on vehicles of 25% on WDV basis. If the cost of capital for the firm is 12% which of the option the firm should adopt?
An engineer is considering the purchase of a new set of batteries for an electric pallet jack. Given the cost, annual benefit, useful life, and i = 5%, conduct a net future worth analysis to decide which alternative to purchase.
3. A used car M costs $4,900.00 and operating costs are 11 cents per mile. At the end of 5 years you estimate its selling price to be $1,500.00. Another used car N costs $6,000.00 and operating costs are 9 cents per mile. At the end of 5 years you estimate the selling price to be $X. Assume you will be driving 15,000 miles per year. Determine the value of X so the two cars are equally worth to you at i=7%.
Subject: accounting
Because of its age, your car costs $7,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,800 that would be expected to have a life of 8 years. If your opportunity cost of capital is 3%, by how much must maintenance expense decrease on the new vehicle to justify its purchase? $ Correct 1,253.62±1
You would like to buy a new car. The car costs will be $81 500. If you can earn 12% per annum, how much do you have to invest today to buy the car in three years? Select one: a. None of the given answers is correct. b. $58 244.14 c. $58 145.32 d. $58 010.09
Fablab Mindanao purchased a water jet cutter in which their total manufacturing cost is expected to decrease due to an increased productivity as shown on the table below. 4 190 185 180 7 175 170 Year 2 200| 195 3 6 1 Cost, PhP 1000 165 a) Draw the Cash Flow Diagram b) Determine the equivalent annual cost at an interest rate of 8% per yeari
An air conditioning unit offers two oрtions to acquire the unit. A рartial рayment of Ρhр 2,000 and a monthly рayment of Ρhр 850 and 1.2% rate.The second is to give Ρhр 2,000 and рay four times at 1 % rate. Both offer is good for a year. Choose the best oрtions.
Econo Cool air conditioners cost $380 to purchase, result in electricity bills of $166 per year, and last for 5 years. Luxury Air models cost $580, result in electricity bills of $132 per year, and last for 8 years. The discount rate is 20% a. What is the equivalent annual cost of the Econo-Cool model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places..
answer and discuss pls
Please don't use hend raiting and step by step solutions