A car that costs $13000 can travel 95 miles per gallon of fuel. Another car costs $12000 can travel 50 miles per gallon of fuel. If fuel costs $7.25 per gallon and MARR is 10% per year, over what range of annual miles driven is the first car more economical? Assume a useful life of 4 years for both cars.

 

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Discrete Compounding; i= 10% Single Payment Uniform Series Compound Amount Compound Amount Sinking Fund Capital Recovery Factor Present Present Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P FIP PIF FIA PIA AIF AIP 1 1.1000 0.9091 1.0000 0.9091 1.0000 1.1000 2 1.2100 0.8264 2.1000 1.7355 0.4762 0.5762 3 1.3310 0.7513 3.3100 2.4869 0.3021 0.4021 4 1.4641 0.6830 4.6410 3.1699 0.2155 0.3155 5 1.6105 0.6209 6.1051 3.7908 0.1638 0.2638 6 1.7716 0.5645 7.7156 4.3553 0.1296 0.2296 7 1.9487 0.5132 9.4872 4.8684 0.1054 0.2054 8. 2.1436 0.4665 11.4359 5.3349 0.0874 0.1874 9 2.3579 0.4241 13.5795 5.7590 0.0736 0.1736 10 2.5937 0.3855 15.9374 6.1446 0.0627 0.1627 Discrete Compounding; i= 10% Single Payment Uniform Series Compound Amount Compound Amount Sinking Fund Capital Recovery Factor Present Present Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P FIP PIF FIA PIA AIF AIP 1 1.1000 0.9091 1.0000 0.9091 1.0000 1.1000 2 1.2100 0.8264 2.1000 1.7355 0.4762 0.5762 3 1.3310 0.7513 3.3100 2.4869 0.3021 0.4021 4 1.4641 0.6830 4.6410 3.1699 0.2155 0.3155 5 1.6105 0.6209 6.1051 3.7908 0.1638 0.2638 6 1.7716 0.5645 7.7156 4.3553 0.1296 0.2296 7 1.9487 0.5132 9.4872 4.8684 0.1054 0.2054 8. 2.1436 0.4665 11.4359 5.3349 0.0874 0.1874 9 2.3579 0.4241 13.5795 5.7590 0.0736 0.1736 10 2.5937 0.3855 15.9374 6.1446 0.0627 0.1627

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Answer Presentvalue of saving needed per year d... View the full answer