Question: Could you please help me with this question. The practice software keep saying it is wrong, I already follow chegg study practice steps. I need

 Could you please help me with this question. The practice software

Could you please help me with this question. The practice software keep saying it is wrong, I already follow chegg study practice steps. I need help, thanks!

Matt Simpson owns and operates Quality Craft Rentals, which offers canoe rentals and shuttle service on the Nantahala River. Customers can rent canoes at one station, enter the river there, and exit at one of two designated locations to catch a shuttle that returns them to their vehicles at the station they entered. Following are the costs involved in providing this service each year: Variable Costs $ 5.00 0 Canoe maintenance Licenses and permits Vehicle leases Station lease Advertising Operating costs Fixed Costs $ 3,300 4,000 6,400 7,920 7,000 22,000 3.00 3.00 Quality Craft Rentals began business with a $25,000 expenditure for a fleet of 30 canoes. These are expected to last 10 more years, at which time a new fleet must be purchased. Rentals have been stable at about 6,400 per year. Required: Matt is happy with the steady rental average of 6,400 per year. For this number of rentals, what price should he charge per rental for the business to make an annual 12% before-tax return on assets using life-cycle costs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price per rental $ 19.77

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!