You won the largest prize lottery has every offered. You want to buy a 20 Tesla as gift for yourself after winning. As an engineer you want to decide which model to buy after computing for the annual worth of each model. Tesla Model X will have a first cost of $90,000, an operating cost of $4000, and a resell value of $15,000 after 5 years. Tesla Model S will have a first cost of $80,000, an annual operating cost of $3100, resale value of $15,000 but after 4 years. As there is a high demand for the Tesla model X, you can resell the vehicle 30% higher than the estimated resell value. At an MARR of 15 % per year, which model should you buy?

You won the largest prize lottery has every offered. You want to buy a 20 Tesla as gift for yourself after winning. As an engineer you want to decide which model to buy after computing for the annual worth of each model. Tesla Model X will have a first cost of $90,000, an operating cost of $4000, and a resell value of $15,000 after 5 years. Tesla Model S will have a first cost of $80,000, an annual operating cost of $3100, resale value of $15,000 but after 4 years. As there is a high demand for the Tesla model X, you can resell the vehicle 30% higher than the estimated resell value. At an MARR of 15 % per year, which model should you buy?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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its already answered in this site just copy paste it and send me here
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