Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help on G H I J The Can of Driving Atuignment. You can work bit atsigknent, applinl to your onn car. and turn

i need help on G H I J
image text in transcribed
The Can of Driving Atuignment. You can work bit atsigknent, applinl to your onn car. and turn it in before In this problen we will estimate the tconemic cests of driving for your cer cof postiblel. The wobsece edmends.com Youn if possible, that mees these three criteris: 1) ithee the used car section of the wobsec, 2 ) it muat not be the fint At the top of the page. bye your vehicle make and year, its total mileage and aunual mileage, and all of the following annoal inserance coit, gas mileage, typical anhual maintenance coet for a car your age asd type, the ounent poce of the zan that you put in your car, the replacement value (retail) of your car, the value of the same car one year older with the same maleage, and the value of the sene car oee year oller with an additional year's mileafs. These last thrse come from the wab sise-yos'll have to ase the used car vehicle appraiser. Then, wing thin informabion, conplese the followilog The cost of driving astienment - 2016 Chevrolet 1500 High Country Silverado - Total miles 136,000 Average yearly miles 22,666 - Annual insurance cost 5834 - 11 miles pergallon - Annual maintenance 5761 - Current price for regular gas $2.72 - Retail value 24,597 - Value of same truck 532,999 - Value of truck one year older $33,989 A) Calculate the per mile cost of gas 50.24 B) Calculate the per mile maintenance cost. 50.034 C) Calculate the average cost per mile of insurance. 50.037 0) Calculate the "opportunity cost of capital," that is, the interest pald (or foregone) on the money you have currently invested in the car, for one year. You can probably find an interest rate on the web site, or you can make up your own (reasonable) interest rate. E) Calculate the average interest cost per mille. F) Calculate total depreciation on the car as the difference between the retail value of the car and the value of the same car one year older with an extra year's milleage. G) Calculate age depreciation as the difference between the value of the car and the value of the same car one year older with the same milleage. H) Calculate use depreciation as the difference between total depreciation and age depreciation. v) Calculate the average depreciation cost per mile. 1) Calculate the marginal depreclation cost-the amount the car depreciates for each mile if is driven. x) Classify each of the following costs as either fixed or varlable: gas, maintenance, insurance, interest, age depreciation, and use depreciation. 4) Calculate the overage costs of driving the car, per mile. Use (some of) your resuits in a)-i). M) Calculate the marginal costs of driving the car, per mile. Use (some of your results in a)-fl. N) The State of Texas reimburses mileage for private cars driven on state business at SSC per mile, If no one else needed to use your car, and you needed to travel on state business, should you drive your own car or take a state car of the same level of quality, safety, and comfort? What about if the reimbursement rate was 25c per mile? 0) An analog here to "increasing output with existing capacity" would be driving faster. We know that the law of diminishing returns applles whenever a firm tries to increase output by using more of a variable input with its eaisting capacity, in the current situation, what is the fixed factor? The variable input? The output? How does driving faster exthibit diminighing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Finance With Excel

Authors: Simon Benninga, Tal Mofkadi

3rd Edition

0190296380, 9780190296384

More Books

Students also viewed these Finance questions

Question

Define broadbanding. What is the purpose of using broadbanding?

Answered: 1 week ago

Question

Distinguish between merit pay, bonus, spot bonuses, and piecework.

Answered: 1 week ago