Rent a wreck car rental agency has a contract with PM warranty,Inc. to do major repairs for
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Rent a wreck car rental agency has a contract with PM warranty,Inc. to do major repairs for $700 per car. The car rentalagency estimates that it could repair its own cars for $300 each ifit acquires a facility for $300000 now. A salvage value of $400000after 15 years is estimated for the facility.What is theminimum number of cars that must be repaired each year to make theacquisition attractive at an interst rate of 10% per year?
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
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