An individual is planning to take an 800-mile trip between two large cities. Three possibilities exist: air, rail, or auto. The person is willing to pay $30 for every hour saved in making the trip. The trip by air costs $600 and travel time is 8 hours, by rail the cost is $450 and travel time is 16 hours, and by auto the cost is $250 and travel time is 22 hours. (a) Which mode is the best choice?
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An individual is planning to take an 800-mile trip between two large cities. Three possibilities exist: air, rail, or auto. The person is willing to pay $30 for every hour saved in making the trip. The trip by air costs $600 and travel time is 8 hours, by rail the cost is $450 and travel time is 16 hours, and by auto the cost is $250 and travel time is 22 hours.
(a) Which mode is the best choice?
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- You are planning a trip to Washington, DC, which is about 1,000 miles from your home. You would not mind either taking the bus or driving your car. (That is, you can ignore implicit or opportunity costs in this analysis.) The bus fare to DC is $200. You also know that you incur the following costs of operating your car during a typical 10,000-mile driving year: Insurance $ 900.00 Interest on auto loan $ 1,800.00 License and registration $ 100.00 Fuel and oil $ 1,000.00 Tires $ 100.00 Maintenance $ 700.00 TOTAL $ 4,600.00 What will be your decision: should you drive or take the bus? [Hint: Show me a little calculation here.Which car to buy? Mr. Fox is a taxi company owner. He is going to buy a new car. Cars M, C, R suite his needs and the prices are 25000, 22000, 23000 euros accordingly. His decision will be based on total costs per kilometer criterion. All the necessary data is given in the table below. Table Costs of the cars Costs Car Fixed costs per year M R Salary 13200 13200 13200 Depreciation, 15% Car insurance, 8% *** Variable costs per 100 km Fuel 11.50 13.10 12.60 Oil 1.17 1.31 1.26 Maintenance and Repair 7.90 8.80 7.79 Tire wear 1.85 2.10 2.25 Calculate fixed, variable and total costs per kilometer for each car. Find a recommended price per kilometer, if 80% of it equals to the total costs per kilometer. Use the Data/Table tool to calculate an average criterion value and deviation from the average for each vehicle when the distance travelled per year changes from 10000 up to 40000 km in steps of 2000 km. build a chart of deviations to facilitate Mr. Fox decision. Write down your…Your Question: QUESTION: 1. Work Related Car Expenes (3800 Km + 500 Km) * $0.72 per Km? May know which method are you choose cents per km method or logbook method? which method better? 2. why no medical levy ? 3. Work-related mobile phone expense? How to calculate? 4.Work-related car expense?How to calculate?
- using excelAssume you've graduated and get the dream job and need transportation to go to work (problem definition)-so you need to purchase a car (objective).You would like to analyze your financial options to purchase the car you want andat the same time spent the minimum possible (decision making criteria).You prefer to pay around 3000$/year (requirements)but if it helps to reduce the cost you can pay more.Explore the options of (compare alternatives to save $) 1- Getting a loan of 20K over 5 years at 5%, how much is your yearly payments. Hint: (=PMT(i,n,p) ) 2- Searching for a better loan at 4%- how much you save? (compare total interest paid I1-I2)3- Try to pay up your loan quicker like 3 years- See how much you save in Interest paid. (compare total interest paid ) 4 - Negotiated the purchase down to 18.5K and see how much you save in interest. (compare total interest paid as well as the total paid) 5- Put down more money at the…Set up and solve an equation for the following business situation. You are moving to a new home and have rented a truck to assist you with the move. Trailside Truck Rentals charges $39.95 per day plus 65 cents per mile. You will need the truck for 5 days and will travel 460 miles. What will be your total cost (in dollars) for the truck rental? $ If you have budgeted $450 for the truck rental, will this amount be sufficient to cover the cost? O yes noYou are trying to decide between two mobile phone carriers. Carrier A requires you to pay $180 for the phone and then monthly charges of $64 for 24 months. Carrier B wants you to pay $90 for the phone and monthly charges of $72 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 3.9%. Based on cost alone, which carrier should you choose? Based on cost alone, you will choose Carrier A (Select from the drop-down menu.) Carrier B Carrier A
- Gateway Tours is choosing between two bus models, one of which lasts longer than the other. Gateway’s discount rate is 8%. It plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown below, which should it choose? For each of the two bus models, give the relevant cost that you would use for comparison purposes. [Note: to make it easier for you to solve this problem, I have already calculated the EAA for one of the buses, as you can see. You do not need to recalculate that one.] Model Year 0 Year 1 Year 2 Year 3 Year 4 Old Reliable 0 -15 -15 -15 -15 Short and Sweet -12 -12 -6 The relevant cost for Old Reliable is: A. -15.00 B. -49.68 C. -14.99 D. -15.01 E. -12.44 F. -15.10 G. -12.42 The relevant cost for Short and Sweet is: A. -15.70 B. -28.26 C. -15.87 D. -9.12 E. -15.84 F. -8.53 G.…Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain, but lasts two years longer than the other. Gateway's discount rate is 9%. It plans to continue with one of the two models for the foreseeable future. Based on the equivalent annual costs of each, shown below, which should it choose? [Note: I have tried to make it easier for you to solve this problem. You do not need to do extra, unnecessary calculations merely to show me your work.] Model Old R Year 0 $0 Year 1 -$29 Year 2 -$29 Year 3 Year 4 -$29 Year 5 -$29 -$29 Year 6 -$29 S & S $0 -$27 -$27 -$27 -$27 Which bus should Gateway Tours choose, and why? because $ is better than $ Give me the name of the bus that should be chosen, and the final numbers that justify your answer. Your answer must take the form: "Choose B IUS Ix = = X₂ x² Insert Formula 14 !!! !!! H IMGateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other. Gateway's discount rate is 11.1%. The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown here:, which should it choose? (Note: dollar amounts are in thousands.) Based on the costs of each model, which should it choose? (Select the best choice below.) A. Gateway Tours should choose Short and Sweet because the NPV of its costs is smaller. B. Gateway Tours should choose Old Reliable because it lasts longer. O C. Gateway Tours should choose Short and Sweet because the equivalent annual annuity of its costs is smaller. D. Gateway Tours should choose Old Reliable because the equivalent annual annuity of its costs is smaller. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Model Year 0 Year 1 Year 2 Year 3 Year 4 - $202 - $3.8 -$3.8 - $3.8 - $3.8 Old…
- k You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Kia Rio, which will cost $17,000 to purchase and which will have OCF of -$1,800 annually throughout the vehicle's expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $25,000 to purchase and which will have OCF of -$950 annually throughout that vehicle's expected 4-year life. Both cars will be worthless at the end of their life. If you intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out into the foreseeable future. If the business has a cost of capital of 12 percent, calculate the EAC. Note: Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations. Round your answers to 2 decimal places. EAC Rio EAC Prius Which one should you choose?Give typing answer with explanation and conclusion Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully-depreciated vans, which you think you can sell for $3,700 a piece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $36,000 each in the configuration you want them, and can be depreciated using MACRS over a 5-year life, but you are unable to make use of either bonus depreciation or Section 179 expensing. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $4,400 each. If your cost of capital is 12 percent and your firm faces a 21 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.)Consider the following situation, which involves two options. Determine which option is less expensive. Are there unstated factors that might affect your decision? You currently drive 275 miles per week in a car that gets 16 miles per gallon of gas. You are considering buying a new fuel-efficient car for $15,000 (after trade-in on your current car) that gets 54 miles per gallon. Insurance premiums for the new and old car are $1000 and $700 per year, respectively. You anticipate spending $1400 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $4.00 per gallon. Over a five-year period, is it less expensive to keep your old car or buy the new car? Question content area bottom Part 1 Over a five-year period, the cost of the old car is $enter your response here and the cost of the new car is $enter your response here . Thus, over a five-year period, it is less expensive to ▼ buy the new car. keep your old…