Fuji Ltd. is considering three alternative proposals for conveyance facilities for its sales personnel who have to do considerable travelling, approximately 20,000 kilometres every year. The proposals are as follows:

(i) Purchase and maintain its own fleet of cars. The average cost of a car is ` 1,00,000.

(ii) Allow the Executive to use his own car and reimburse expenses at the rate of ` 1.60 per kilometre and also bear insurance costs.

(iii) Hire cars from an agency at ` 20,000 per year per car. The company will have to bear costs of petrol, taxes and tyres.

The following further details are available: Petrol.................................................................. ` 0.60 per km Repairs and maintenance........................................` 0.20 per km Tyres................................................................... ` 0.12 per km Insurance............................................ ` 1,200 per car per annum Taxes................................................... ` 800 per car per annum Life of the car................ 5 years with annual mileage of 20,000 kms

Resale value........................... ` 20,000 at the end of the fifth year

Required Work out the relevant costs of three proposals and rank them