A car rental agency has a contract with a garage for major repair service for $450.00 per
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A car rental agency has a contract with a garage for major repair service for $450.00 per car, every 6 months. Management estimates that for $150,000, amortized at 8% interest for 20 years, and a salvage value of $60,000, the company could have its own facility doing its own car repairs at a cost of $200 per car, every 6 months. Ignoring taxes, and other economic factors, what is the minimum number of cars needed to make the change feasible?
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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