You plan to purchase a car for $28,000. Its market value will decrease by 20% per year. You have determined that the IRS-allowed mileage reimbursement rate for business travel is about right for fuel and maintenance at $0.505 per mile in the 1st year. You anticipate that it will go up at a rate of 10% each year, with the price of oil rising, influencing gasoline, oils, greases, tires, and so on. You normally drive 15,000 miles per year. Your MARR is 9%.

Chapter 07, Problem 029 You plan to purchase a car for $28,000. Its market value will decrease by 20% per year. You have determined that the IRS-allowed mileage reimbursement rate for business travel is about right for fuel and maintenance at $0.505 per mile in the 1st year. You anticipate that it will go up at a rate of 10% each year, with the price of oil rising influencing gasoline, oils, greases, tires, and so on. You normally drive 15,000 miles per year. Your MARR is 9% What is the optimum replacement interval for the car? years Round your answer to a whole number Show the EUAC value used to reach your decision: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 10