Question 3

Joe's company van is due to be scrapped after its Certificate Of Entitlement (COE) expires. He is tasked with capital equipment procurement to replace the soon-to-bescrapped van. He has done some preliminary enquiries and has determined the following:

Initial costs: COE Category C for goods vehicle: $2X,500 Van costs: $5X,900. Where X is the last digit of your student P.I. number. Estimated ownership and running costs over 10 years are tabulated in Table 2: