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You are planning a weekend visit with your sister who is attending St Clair College in Windsor. You are not sure if you should drive
You are planning a weekend visit with your sister who is attending St Clair College in Windsor. You are not sure if you should drive your car there or take the Via train from Hamilton to Windsor. Your friend, a Mohawk accounting student. has prepared a summary of the cost per kilometer to run your car. This is her analysis: Cost Cost Per Kilometer Depreciation assuming you keep the car for 5 years $0.40 Cost of Gas $0.10 Insurance and license cost $0.25 Cost of maintenance and repairs (including oil changes} $0.07 Parking fees at Mohawk $0.02 Total average cost $0.84 Your sister's apartment is approximately 280 kilometres away. You can park your car near to the apartment. but it will cost you $15 per day to park. One of your neighbours has said they will look after your dog for the weekend. and you plan to give him $50 for this. The cost ofa return train ticket is $135. Should you drive or take the train? Required: 1. For each cost identied above. indicate if it is relevant or not for this decision and why you believe the cost is relevant or not relevant [8 marks). and 2. Would you drive or take the train. Show your calculations and explain why you chose that mode oftranspor'tation. including any nonfinancial reasons
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