Question
hi help me with this question I am a bit confused Ben is starting college next month. He currently has a 1997 Chevy Corsica, purchased
hi help me with this question I am a bit confused
Ben is starting college next month. He currently has a 1997 Chevy Corsica, purchased a year ago for $2,000. Corsica's annual insurance totals $2,000 and fuel expense (to and from college) is estimated at $200 per month. He estimates that the Corsica will have repair costs of $500 per year for the next four years. Ben expects Corsica to be worthless by the time he graduates college.
Ben is considering selling the Corsica for $1,000 and purchasing a 2010 Honda Accord for $7,000. By doing this, he will be comfortable working as a SkipTheDishes driver, generating $1,200 in monthly revenues (approximately 70 hours of work per month). Because of the higher mileage, Ben expects to pay $800 a month for fuel and $300 per quarter for repairs and maintenance. The Accord's insurance will be $210 per month.
Ben believes he will be able to sell the Accord for $2,000 fours years from now. Advise Ben on buying the Accord, discussing all relevant factors.8
Question 2 Ben is starting college next month. He currently has a 199? Chevy Corsica, purchased a year ago for $2,000. The Corsica's annual insurance totals $2,000 and fuel expense {to and from college] is estimated at $200 per month. He estimates that the Corsica will have repair costs of $500 per year for the next four years. Ben expects the Corsica to be worthless by the time he graduates college. Ben is considering selling the Corsica for $1,000 and purchasing a 2010 Honda Accord for 5?,000. By doing this, he will be comfortably work as a SkipTheDishes driver, generating $1,200 in monthly revenues [approximately 70 hours of work per month]. Because of the higher mileage, Ben expects to pay $800 a month for fuel and $300 per quarter for repairs and maintenance. The Accord's insuranoe will be $210 per month. Ben believes he will be able to sell the Accord for $2,000 fours years from now. Advise Ben on buying the Accord, discussing all relevant factorsStep by Step Solution
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