An automobile that runs on electricity can be purchased for $25,000. The automobile is estimated to have

Question:

An automobile that runs on electricity can be purchased for $25,000. The automobile is estimated to have a life of 12 years with annual travel of 20,000 miles. Every three years, a new set of batteries will have to be purchased at a cost of $3,000. Annual maintenance of the vehicle is estimated to cost $700. The cost of recharging the batteries is estimated at $0,015 per mile. The of the batteries and the vehicle at the end of 12 years is estimated to be $2,000. Suppose the is 7%. What is the cost per mile to own and operate this vehicle based on the preceding estimates? The $3,000 cost of the batteries is a net value with the old batteries traded in for the new ones.
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