You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, 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. 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. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Scion's EAC Toyota's EAC

You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, 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. 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. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Scion's EAC Toyota's EAC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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[Use Excel] You are planning to buy a new car before you move to a new place for a job after graduation. You are given two options. The first one is the Toyota Prius which has an initial cost of $25,000 with miles per gallon (MPG) of 50. The second option is a regular sedan car with an initial cost of $18,000 and an MPG of 25. If the gasoline price is $ 4.50/gallon, the annual effective interest rate is 8%, beyond which annual mileage of the car you will choose Prius over the regular car. The car is supposed to stay for 10 years. [Round the final answer to an integer by round(answer,0) command]
Should Jim sell his Minivan? Jim's 1998 minivan is quite functional, but it only averages 20 miles per gallon (mpg). He has found a somewhat newer vehicle (roughly the same functionality) that averages 26 mpg. He can sell his current minivan for $2800 and purchase the newer vehicle for $4,000. Assume a cost of gasoline $4.00 per gallon. How many miles per year must Jim drive if he wants to recover his investment in three years? Assume an interest rate of 6%, zero salvage value for either vehicle after three years, and identical maintenance cost.
Suppose you started a savings account and put $70 in the bank and left it there for 1 year. Also assume you put no other money in that account. If the annual interest rate is R = 0.05 (5%), then at the end of the year you would have how much in your account at the end of the year? Group of answer choices A) $73.50 B) $70.50 C) none of the other options. D) $75 E) $72.80
The cost of building the RAMA IX suspension bridge in Thailand is $8 million. The bridge will need to be repainted every 7 years and resurfaced every 9 years, each for an indefinite period of time. The cost of painting is expected to be $159,000 and the cost of resurfacing is estimated to be $417,000. For part a, please calculate your answer to the nearest whole dollar. Format 0000 No commas a. Determine the capitalized worth of the bridge an interest rate of 4% per year compounded annually. $- For part b, please calculate your answer to 2 decimal places. Do not convert to a percent - leave in decimal form: 0.00 b. What is the effective interest rate for this project?
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Assume that your father is now 50 years old and plans to retire after 10 years from now. He is expected to live for another 25 years after retirement. He wants a fixed retirement income of Rs. 5,00,000 per annum. His retirement income will begin the day he retires, 10 years from today, and then he will get 24 additional payments annually. Your father has current savings of Rs. 10,00,000 and he expects to earn a return on his savings @ 10% p.a., annually compounding. How much (to the nearest of rupee) must your father save during each of next 10 years to meet his retirement goal?
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