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please type the answers and label the answers)(mba 5400 Capital Budgeting Techniques) Lafayette Corporation also struggles with a question of whether to use high quality
please type the answers and label the answers)(mba 5400 Capital Budgeting Techniques)
- Lafayette Corporation also struggles with a question of whether to use high quality vehicles for their fleet that cost more to purchase, but less to operate, or low quality vehicles which lost less but more to operate. The cash costs of each type of vehicles are:
| High Quality | Low Quality |
0 | -$16,000 | -$12,000 |
1 | -$1,000 | -$2,000 |
2 | -$2,000 | -$3,000 |
3 | -$3,000 | -$4,000 |
4 | -$4,000 | -$6,000 |
Compute the least-cost vehicle using a discount rate of 15%.
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