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6-49 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
6-49 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 Gasoline $24,000 $19,000 92 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 88 16 $ 900 700 1,000 6,000 1,000 4,000
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