Question: SOLVE BY HAND MANUALLY NO SOFTWARE TO BE USED A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The

SOLVE BY HAND MANUALLY NO SOFTWARE TO BE USED A

SOLVE BY HAND MANUALLY NO SOFTWARE TO BE USED

A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The cars average 80,000 km a year. Use an annual cash flow analysis to determine the more economical choice if interest is 6%. Diesel Vehicle cost Useful life, in years Fuel cost per liter Mileage, in km/liter Annual repairs Annual insurance premium End-of-useful-life resale value $24,000 5 88 16 $ 900 1,000 4,000 Gasoline $19,000 4 92 11 $ 700 1,000 6,000

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