Your boss has asked you to look into optimizing the commercial van ownershipstrategy for your company. The company you work for bought a van for $95,600 formaking deliveries. You expect the van to be driven 17,000 miles per year, with eachmile costing you around $1.00 per mile in the first year. The operating cost per mileis expected to increase by 7% per year after the first year. The resale value of the vanis expected to decrease by 15% in the first year and then by 7% per year from thereon out. What is the optimal ownership period (economic life) in years assuming aMARR of 9%?8 years4 years7 years5 years3 years6 years

Economic life, generally called the supportive life, suggests the assessed term or period during…

Your boss has asked you to look into optimizing the commercial van ownershi strategy for your company. The company you work for bought a van for $95,60 making deliveries. You expect the van to be driven 17,000 miles per year, with mile costing you around $1.00 per mile in the first year. The operating cost per is expected to increase by 7% per year after the first year. The resale value of t is expected to decrease by 15% in the first year and then by 7% per year from on out. What is the optimal ownership period (economic life) in years assuming MARR of 9%? 8 years 4 years

Your boss has asked you to look into optimizing the commercial van ownershi strategy for your company. The company you work for bought a van for $95,60 making deliveries. You expect the van to be driven 17,000 miles per year, with mile costing you around $1.00 per mile in the first year. The operating cost per is expected to increase by 7% per year after the first year. The resale value of t is expected to decrease by 15% in the first year and then by 7% per year from on out. What is the optimal ownership period (economic life) in years assuming MARR of 9%? 8 years 4 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $766,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $160,000. The company’s MARR is 25% per year. The equivalent annual cost of the installed equipment is $−
I think these two questions are testing a similar type of concept. Why don't we include the 4.3 in q1 or 310 in q2 as cost and subtract it
Hand written solutions are strictly prohibited
! Required information Eight years ago, Ohio Valley Trucking purchased a large- capacity dump truck for $102,000 to provide short-haul earth-moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,200 per year. A complete overhaul at the end of year 4 costs an extra $3600. Calculate the annual cost of the truck at i = 8% per year. The annual cost of the truck is $- per year.
Only typed Answer
The Ford Motor Company has re-designed its best selling truck by substituting aluminum for steel in many key body parts. This saves 600 pounds of weight and decreases gas consumption. The fuel consumption will be 27 miles per gallon (mpg), up from 24 mpg of the previous year's model. Ford will increase the sticker price of the re-designed vehicle by $470. Assume this vehicle will be driven 16,000 miles per year and its life will be 9 years. The owner's MARR is 8% per year and gasoline costs $3.02 per gallon. What is the present worth of the incremental capital outlay for the lighter truck? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. The present worth of the incremental capital outlay for the lighter truck is $ (Round to the nearest dollar.)
A small company wishes to set up a fund that can be used for technology purchases over the next 6 years. Their forecast is for $16,000 to be needed at the end of year 1, decreasing by $2,000 each year thereafter. The fund earns 9% per year. How much money must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal?
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Please show ALL the steps and required formulas and make sure the answer is CORRECT! thank you for your help
Please solve the problem and draw a diagram for the problem, Make sure you post pictures of your work instead of writing it. Please! Thank you for your help.
Please answer as quickly as possible and zoom in for better view
If prices are calculated with a 35% mark-up based on cost, what is the percent that those prices should be marked down to get back to their original cost? Support the answer with appropriate computations.