Question: Problem 2 (4 marks) Peter is now considering buying the new car. Usually, he uses the car for around 2,000 kilometers per month. After comparing

 Problem 2 (4 marks) Peter is now considering buying the new

Problem 2 (4 marks) Peter is now considering buying the new car. Usually, he uses the car for around 2,000 kilometers per month. After comparing various models, he chooses the car model with the price of 900,000 baht. The expected useful life of this car is 8 years. After gathering information about fuel consumption and maintenance cost, he estimates that the fuel cost is around 2.5 baht per kilometer and the maintenance cost is around 10,000 baht per year. Before making the final decision to buy this car, Peter has the meeting with his best friend, Tony. Tony suggests that Peter should buy the EV car (Electric Vehicles) instead. Tony explains about the advantages of using EV car as the fuel cost and maintenance cost will be cheaper. He estimates that using electricity can help to reduce fuel cost to around 1 baht per kilometer and the maintenance cost should be reduced by 50%. He also introduced one model of EV car with the similar feature as the one currently considered by Peter. The price of this EV car is 1,200,000 baht. After getting this information, Peter decides to compare between his chosen car model and EV car before making a final decision. Use the differential analysis to help Peter in making a decision which car should be selected. Problem 2 (4 marks) Peter is now considering buying the new car. Usually, he uses the car for around 2,000 kilometers per month. After comparing various models, he chooses the car model with the price of 900,000 baht. The expected useful life of this car is 8 years. After gathering information about fuel consumption and maintenance cost, he estimates that the fuel cost is around 2.5 baht per kilometer and the maintenance cost is around 10,000 baht per year. Before making the final decision to buy this car, Peter has the meeting with his best friend, Tony. Tony suggests that Peter should buy the EV car (Electric Vehicles) instead. Tony explains about the advantages of using EV car as the fuel cost and maintenance cost will be cheaper. He estimates that using electricity can help to reduce fuel cost to around 1 baht per kilometer and the maintenance cost should be reduced by 50%. He also introduced one model of EV car with the similar feature as the one currently considered by Peter. The price of this EV car is 1,200,000 baht. After getting this information, Peter decides to compare between his chosen car model and EV car before making a final decision. Use the differential analysis to help Peter in making a decision which car should be selected

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 Accounting Questions!