Question: Answer 9-75, I posted 9-74 so you could read the problem statement. The answer to 9-74 is 175. 9-74 Tyrella Jackson is buying a used

Answer 9-75, I posted 9-74 so you could read the problem statement. The answer to 9-74 is 175.

9-74 Tyrella Jackson is buying a used car. Alternative A A is an American-built compact. It has an initial cost of $8900 and operating costs of 9f/km, excluding depreciation. From resale statistics, Tyrella estimates the American car can be resold at the end of 3 years for $1700. Alternative B is a foreign-built Fiasco. Its initial cost is $8000, the operating cost, also excluding depreciation, is 8d/km. How low could the resale value of the Fiasco be to provide equally eco- nomical transportation? Assume Tyrella will drive 12,000 km/year and considers 8% as an appropriate interest rate. 9-75 Analyze Problem 9-74 again with the following changes: (a) What if the Fiasco is more reliable than expected., so that its operating cost is $0.075/km? (b) What if Tyrella drives only 9000 km/year? (c) What if Tyrella's interest rate is 6% annually? (d) What if (a), (b), and (c) happen simultaneously

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