A company is currently paying its employees $0.55 per mile to drive their own cars on company

Question:

A company is currently paying its employees $0.55 per mile to drive their own cars on company business. The company is considering supplying employees with cars, which would involve purchasing at $25,000 with an estimated three-year life, a net of $8,000, taxes and insurance at a cost of $1,200 per year, and operating and maintenance expenses of $0.30 per mile. If the interest rate is 10% and the company anticipates an employee's annual travel to be 30,000 miles, what is the equivalent cost per mile (neglecting income taxes)?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...