Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 2P
Refer to Example 11-2. Assuming gasoline costs $4.00 per gallon, find the breakeven mileage per year between the hybrid vehicle and the gas-only vehicle. All other factors remain the same.
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Pierre Rizzo is considering purchasing a new car. The price of the car is $60000, and Pierre hopes to keep it 4 years and then sell it for $19000. Based on past experience, Pierre drives about 12,000 km per year and lives in a downtown
apartment where they must pay a $63 per month parking fee. Pierre has budgeted the following automobile expense items for the next 4 years:
Expense
Gasoline(13.7L Per 100KM)($1.71 Per Liter)
Licence/Registration
Insurance
Maintenance
Tires ($1407 per set that last 42000KM)
Parking (48 Months)
Interest
Depreciation (STRAIGHT LINE)
Cost
Fixed/Variable
Variable
$483
Fixed
$3309
Fixed
$960
Variable
Variable
$3024
Fixed
$3090
Fixed
$
Fixed
CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION:
TOTAL FIXED COSTS (TFC)
TOTAL VARIABLE COSTS (TVC)
TOTAL COSTS (TC)
TOTAL KMS
AVG. FIXED COSTS/KM
$
AVG. VARIABLE COSTS/KM
$
AVG. TOTAL COSTS/KM
$
48000KM
Pierre Rizzo is considering purchasing a new car. The price of the car is $60000, and Pierre hopes to keep it 4 years and then sell it for $19000. Based on past experience, Pierre drives about 12,000 km per year and lives in a downtown
apartment where they must pay a $63 per month parking fee.Pierre has budgeted the following automobile expense items for the next 4 years:
Expense
Gasoline(13.7L Per 100KM)($1.71 Per Liter)
Licence/Registration
Insurance
Maintenance
Tires ($1407 per set that last 42000KM)
Parking (48 Months)
Interest
Depreciation (STRAIGHT LINE)
Cost
Fixed/Variable
Variable
$483
Fixed
$3309
Fixed
$960
Variable
Variable
$3024
Fixed
$3090
Fixed
Fixed
CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION:
TOTAL FIXED COSTS (TFC)
TOTAL VARIABLE COSTS (TVC)
TOTAL KMS
TOTAL COSTS (TC)
48000KM
AVG. FIXED COSTS/KM
AVG. VARIABLE COSTS/KM
S
AVG. TOTAL COSTS/KM
S
Car A costs $800 more than Car B, but it consumes 0.035 gallons/mile versus 0.06 gallons/mile for Car B. Both vehicles last 10 years and B's salvage value is $175 smaller than A's. Fuel costs $2.30/gallon. Other things being equal, beyond how many miles of use per year (x) does A become preferable to B?
Chapter 11 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
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