Question: A vehicle cost PHP 1 , 8 0 0 , 0 0 0 . 0 0 to purchase. Maintenance is estimated to cost PHP 2

A vehicle cost PHP 1,800,000.00 to purchase. Maintenance is estimated to cost PHP 20,000.00 per 5000 km. The vehicle is expected to operate a mileage of 15,000 km per year. The cost of tires is estimated to be PHP 30,000 and are set to be replaced at its 4th year. Assume fuel to cost 90 pesos per liter and the company's cost of capital rate is 8.5%. How much should the
owner of the vehicle charge per km of use?How is the charge per km of use if the fuel will not be charged to the owner?

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