You just wrecked your car. An automobile dealer offers you AED5,000 for the car as is....
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You just wrecked your car. An automobile dealer offers you AED5,000 for the car as is. Your insurance company estimates that there is AED3,000 of damage to your car. The insurance company can fix the car right away in a repair shop belonging to this company. Because you have collision insurance with AED2,000 deductibility provision, the insurance company mails you a check for AED2,000. The odometer reading on your wrecked car is 150,000 Km. Additional Information: You have AED10,000 in savings. You can buy a newer car for AED13,000 with an odometer reading of 25,000 Km. After repairing the wrecked car, it can be sold for AED6,500. A discount repair shop charges AED2,000 and requires 1 month. A car rental for onemonth is AED3,000 Develop all possible cashflow alternative scenarios for this problem. You just wrecked your car. An automobile dealer offers you AED5,000 for the car as is. Your insurance company estimates that there is AED3,000 of damage to your car. The insurance company can fix the car right away in a repair shop belonging to this company. Because you have collision insurance with AED2,000 deductibility provision, the insurance company mails you a check for AED2,000. The odometer reading on your wrecked car is 150,000 Km. Additional Information: You have AED10,000 in savings. You can buy a newer car for AED13,000 with an odometer reading of 25,000 Km. After repairing the wrecked car, it can be sold for AED6,500. A discount repair shop charges AED2,000 and requires 1 month. A car rental for onemonth is AED3,000 Develop all possible cashflow alternative scenarios for this problem.
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Answer rating: 100% (QA)
There are two option he can take 1he can sell the car 2he can repair and use it again 1SELLING THE C... View the full answer
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
Posted Date:
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