31.

A new technological line of gasoline production has the following parameters:

https://learning.unb.ca/webct/urw/lc59525498001.tp59550888001/ViewS...

- annual production is 20,343 litres;

- purchase price is $86,748

- operatining costs are $904 per year;

- depreciation rate is 20%;

- service life is 5 years

Expected annual inflation is 4%. If current interest rate is 10%, what is the unit cost of gasoline in

dollars per litre in real terms?

(Don't use the $ sign and units - just a number; keep two

decimal points