A corporate fleet of 30 automobiles costs $900,000. After five years each automobile can be salvaged...

A corporate fleet of 30 automobiles costs $900,000. After five years each automobile can be salvaged for $10,000 each. Each car will be used for 12,000 miles per year. With a MARR of 14%, what is the equivalent annual cost per mile?

Expert Solution

ekkarill92 answered 2 years ago

The Elite Car Rental Corporation is contemplating expanding its short-term rental fleet by 30 automobiles at...

The Elite Car Rental Corporation is contemplating expanding its short-term rental fleet by 30 automobiles at a cost of $1,000,000. It expects to keep the autos for only two years and to sell them at the end of that period for 55 percent, on average, of what they cost. The plan is to generate $20,000 of incremental revenue per additional auto in each year of operation. The controller estimates that other costs will amount to 20 cents per kilometre on...

A study investigated maintenance and repair costs for automobiles. A random sample of 39 automobile owners...

A study investigated maintenance and repair costs for automobiles. A random sample of 39 automobile owners were asked how much they spent on maintenance and repair costs in the last year. The average amount spent was 1387.782 dollars with a standard deviation of 170 dollars. Is there evidence at the 0.05 level that maintenance and repair costs exceeds 1320 dollars annually? HoHo: Select an answer μ p̂ p ȳ ? ≠ = > < HaHa:Select an answer p̂ p ȳ μ ?...

H and V Car Rental Corporation is contemplating expanding its short-term rental fleet by 30 automobiles...

H and V Car Rental Corporation is contemplating expanding its short-term rental fleet by 30 automobiles at a cost of $1,000,000. It expects to keep the autos for only two years and to sell them at the end of that period for 55 percent, on average, of what they cost. The plan is to generate $20,000 of incremental revenue per additional auto in each year of operation. The controller estimates that other costs will amount to 20 cents per kilometre...

Create data for the purchase of an automobile. There should be 10 automobiles in your database. You can...

Create data for the purchase of an automobile. There should be 10 automobiles in your database. You can get this from the newspaper or go online and find a site that will give you some possible purchases. You should use the following fields: Manufacturing, Model, Year, Doors, Cylinders and Sales Price. 1. Print the spreadsheet you created for your data. 2. Create and print 2 pivot tables to find some information you need to help you make your decision. 3. Do a VLOOKUP...

Five years ago, San Francisco Berhad issued $10,000,000 of corporate bonds with a 30-year maturity. The...

Five years ago, San Francisco Berhad issued $10,000,000 of corporate bonds with a 30-year maturity. The bonds have a coupon rate of 10.125% pay interest semiannually and have a par value of $1,000 per bond. The bonds are currently trading at a price of $879.625 per bond. At the same time, a 25-year Treasury bond with a 6.825% coupon rate (paid semiannually) and $1,000 par is currently selling for $975.42. Determine the yield spread between the corporate bond and the...

An electronic data storage firm can purchase a bank of servers for $500,000. After five years...

An electronic data storage firm can purchase a bank of servers for $500,000. After five years of use, the servers are expected to have a salvage value of $20,000. What will the servers depreciation value in year 5 be (rounded to the nearest dollar), assuming: (a) They are classified as computer hardware, which is classified as CCA Asset Class 50? (b) Straight line depreciation? (c) Sum-of-the-years’-digits depreciation? (d) 150% declining-balance depreciation?

You are planning to retire after working for another 30 years. You believe that you can...

You are planning to retire after working for another 30 years. You believe that you can save 4% of your salary annually. Your last salary, which has just been paid, was $45,000. You anticipate that your salary will increase at the rate of 5% for the remainder of your working life. The savings will be placed in investments earning an average return of 9% per year. After retiring you expect to live on your savings for 20 years. a. If...

A machine costs $900,000 and requires $50,000 maintenance for each year of its three-year life. the...

A machine costs $900,000 and requires $50,000 maintenance for each year of its three-year life. the maintenance costs are paid at the end of each year. after 3 years, the machine will be replaced. assume a tax rate of 34% and a discount rate of 14%. if the machine is depreciated over three years using the straight-line method, with no salvage value, what is the equivalent annual annuity?

I plan to retire in 40 years and live 30 years after retiring.•After retirement I...

I plan to retire in 40 years and live 30 years after retiring. •After retirement I want to be able to withdraw $30,000 each year. •The annual interest rate is 8%.•How much do I need to save each year in the next 40 years? How would you do this on a BAII Plus Calculator?

Five years a borrower incurred a mortgage for $80,000 at 10 percent for 30 years, monthly...

Five years a borrower incurred a mortgage for $80,000 at 10 percent for 30 years, monthly payments. Currently the market rate is 8 percent on 25-year mortgages. The existing mortgage has a prepayment penalty of 5 percent of the outstanding balance at prepayment for the first 10 years of the mortgage and the lender will charge 4 percent financing cost on a new loan. The borrower's opportunity investment rate is 8 percent. The borrower is considering refinancing the payoff of...

Question