For Sarah, one of the most exciting aspects of landing a full-time job was being able...
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For Sarah, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Sarah is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost. Here are the costs and benefits she has gathered for each of these options: Buy New Buy Used Lease Midnight-Blue SUV Monthly payment $520 $320 $290 plus $2 per mile if Time frame 6 years 4 years Warranty Excellent for 100,000 miles Excellent for next 40,000 miles only Full coverage insurance $195 per month $150 per month Operating cost $0.20 per mile $0.20 per mile Expected mileage per 13,500 13,500 year Safety features Maximum Moderate (a) Your answer is incorrect. over 10,000 miles per year 2 years Excellent for length of lease $210 per month $0.20 per mile 13,500 Maximum Identify the relevant costs associated with each of Sarah's three options. (Round answers to 2 decimal places, e.g. 15.25.) Buy New Total average monthly cost $ 940 $ Buy Used 695 $ Lease Midnight Blue SUV 1308.33 For Sarah, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Sarah is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost. Here are the costs and benefits she has gathered for each of these options: Buy New Buy Used Lease Midnight-Blue SUV Monthly payment $520 $320 $290 plus $2 per mile if Time frame 6 years 4 years Warranty Excellent for 100,000 miles Excellent for next 40,000 miles only Full coverage insurance $195 per month $150 per month Operating cost $0.20 per mile $0.20 per mile Expected mileage per 13,500 13,500 year Safety features Maximum Moderate (a) Your answer is incorrect. over 10,000 miles per year 2 years Excellent for length of lease $210 per month $0.20 per mile 13,500 Maximum Identify the relevant costs associated with each of Sarah's three options. (Round answers to 2 decimal places, e.g. 15.25.) Buy New Total average monthly cost $ 940 $ Buy Used 695 $ Lease Midnight Blue SUV 1308.33
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Lets break down the costs for each option 1 Buy New Monthly payment 520 Full coverage insurance ... View the full answer
Related Book For
Organizational Behaviour Understanding And Managing Life At Work
ISBN: 9780135218549
11th Edition
Authors: Gary Johns, Alan M Saks
Posted Date:
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