Question
Which Car is the better purchase. Assume the each car will remain in service for 5 years. Car A Car B Gas $2.00 2.00 Distance
Which Car is the better purchase. Assume the each car will remain in service for 5 years.
Car A Car B
Gas $2.00 2.00
Distance per year 10000 10000
Discount Rate 4% 4%
Purchase Price $18,000 $20,000
Mileage Per Gallon 25 30
Maintenance per year $200 $150
Residual value $5,000 $7000
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
