Question: appreciate the help which alternative is cheaper ? and if the practice expands he has to do 5000 km annually . which is cheaper ?

appreciate the help
which alternative is cheaper ? and if the practice expands he has to do 5000 km annually . which is cheaper
?  appreciate the help which alternative is cheaper ? and if the

2. A management consultant now spends $0.75 per k.m on taxi fares for his clients work. He is considering other transport alternatives, which include the purchase of a new small car or an older bigger car. Item Purchase price ($) Annual Depreciation applicable ($) Repairs and servicing per annum ($) Insurance per annum ($) Petrol consumption per liter (K.m.) Petrol price per liter ($) New Small Car 6,000 600 900 170 12 1.300 Old bigger Car 5,000 800 1,100 150 8 1.300 The management consultant estimates that on an average he commutes 2,000 Km annually. a). Which of the three alternatives will be cheaper? b). If his practice expands he has to do 5,000 K.m annually. Which is cheaper

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