Marginal costs Personal Finance Problem Jimmay Johneon is interested in buying a new Jeep SUV There are hwo options available, a V-6 model and a v-8 model Whichever model he chooses, he plans to dnve t for a peniod ot 5 years and then se Assume that the trade in value of the two vehicales at the end of the 5-year ownership peniod will be idenical There are diferenceof $14,500 to be the marginal cost dterence between the te vehicles However, here s much more data avalable, and you suggest to Jimmy tat hes analysn may betoo smpie and w1ead hm a poor tana acson Assume hat the prevaing discourtzieir bof, mices s ssn mer are delinite ditierences between the two models and Jimmy needs to make a tnancial comparson. The manuflacturers suogested retall price (MSRP) of the V-6 and V-8 are $30.300 and 544 800, respecively Jemey beheves the pertinent infomation on this purchase is shown in the tollowing table a. Caloulate the total True" cost for each vehicle over the 5 year ownershp period b. Cakcuiale the so uel cost for each veeice over the S-year ownership penod C. What is the marginal el cost from purchasing the large va suv d. What is the marginal cost of purchasing the larger and more espensive V-8 SU e. whan is the total margrue cost associated with purchaung the v sny How 00es INs re compare wr.e S 14.500 Baummy calculated? a. The true cost of e io model Round to the nearest dor The true cost of the Vs mode s s(Round to he ae . The fuel cost of the V6 model a (Round to he eet oa The tuel cost of the Vl model is s(Round to the pearest dolar) c. The marginal tuel cost trom purchasing the V-4 models(Round to the nearest olal) Marginal costs Personal Finance Problem Jimmay Johneon is interested in buying a new Jeep SUV There are hwo options available, a V-6 model and a v-8 model Whichever model he chooses, he plans to dnve t for a peniod ot 5 years and then se Assume that the trade in value of the two vehicales at the end of the 5-year ownership peniod will be idenical There are diferenceof $14,500 to be the marginal cost dterence between the te vehicles However, here s much more data avalable, and you suggest to Jimmy tat hes analysn may betoo smpie and w1ead hm a poor tana acson Assume hat the prevaing discourtzieir bof, mices s ssn mer are delinite ditierences between the two models and Jimmy needs to make a tnancial comparson. The manuflacturers suogested retall price (MSRP) of the V-6 and V-8 are $30.300 and 544 800, respecively Jemey beheves the pertinent infomation on this purchase is shown in the tollowing table a. Caloulate the total True" cost for each vehicle over the 5 year ownershp period b. Cakcuiale the so uel cost for each veeice over the S-year ownership penod C. What is the marginal el cost from purchasing the large va suv d. What is the marginal cost of purchasing the larger and more espensive V-8 SU e. whan is the total margrue cost associated with purchaung the v sny How 00es INs re compare wr.e S 14.500 Baummy calculated? a. The true cost of e io model Round to the nearest dor The true cost of the Vs mode s s(Round to he ae . The fuel cost of the V6 model a (Round to he eet oa The tuel cost of the Vl model is s(Round to the pearest dolar) c. The marginal tuel cost trom purchasing the V-4 models(Round to the nearest olal)
