A shuttle bus service is proposed between downtown and the airport, and you are asked to...
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A shuttle bus service is proposed between downtown and the airport, and you are asked to find the rate of return, given the data below. cost of shuttle bus new life of shuttle bus $150,000 120 months resale value at EOM 120 $50,000 O & M cost $2,000/month gradient in O&M= $20/month/month periodic overhaul every 12 months (first at EOM 7, last at EOM 115)= $5,000 at EOM 7 gradient in periodic overhaul = 1%/month compounded anticipated income = $5,800/month A shuttle bus service is proposed between downtown and the airport, and you are asked to find the rate of return, given the data below. cost of shuttle bus new life of shuttle bus $150,000 120 months resale value at EOM 120 $50,000 O & M cost $2,000/month gradient in O&M= $20/month/month periodic overhaul every 12 months (first at EOM 7, last at EOM 115)= $5,000 at EOM 7 gradient in periodic overhaul = 1%/month compounded anticipated income = $5,800/month
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The rate of return is calculated as follows Cost of shuttle bus new 150000 Life ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1118385388
2nd edition
Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle
Posted Date:
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