Assume that you are considering to buy a Toyota Corolla automobile. You need to select one of the Diesel and Gasoline option. The related information is given in the following table. The car will be used for 5 years and then it will be sold. What is the annual average distance that makes Diesel and Gasolline option equivalent (i=10%). Diesel Gasoline Price (TL) 94000 78000 Insurance (TL/year) 700 700 Fuel cost (Lt/TL) 4.44 5.16 Fuel consumption (Ltkm) Salvage value after 5 years (TL) 0.042 0.058 70000 58000

Question

Solve this problem I upvote 

Assume that you are considering to buy a Toyota Corolla automobile. You need to select one of the Diesel and
Gasoline option. The related information is given in the following table. The car will be used for 5 years and then it will
be sold. What is the annual average distance that makes Diesel and Gasolline option equivalent (i=10%).
Diesel
Gasoline
Price (TL)
94000
78000
Insurance (TL/year)
700
700
Fuel cost (Lt/TL)
4.44
5.16
Fuel consumption (Ltkm)
Salvage value after 5 years (TL)
0.042
0.058
70000
58000

Image Transcription

Assume that you are considering to buy a Toyota Corolla automobile. You need to select one of the Diesel and Gasoline option. The related information is given in the following table. The car will be used for 5 years and then it will be sold. What is the annual average distance that makes Diesel and Gasolline option equivalent (i=10%). Diesel Gasoline Price (TL) 94000 78000 Insurance (TL/year) 700 700 Fuel cost (Lt/TL) 4.44 5.16 Fuel consumption (Ltkm) Salvage value after 5 years (TL) 0.042 0.058 70000 58000

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Accounting and Finance Analysis

Related Finance Q&A

Find answers to questions asked by students like you.

Q: 2. A man plans a 20year plan fund for his daughter, he wants her to receive 700,000 peryear for 10ye...

A: The steps to be performed to know the amount of investment today is shown: Step 1 - Find the amount ...

Q: Explain pension fund

A:   Pension funds, also known as retirement funds, are investment options that allow an individual to ...

Q: 1) What is the company's WACC? 2) Should the company take the projects? Assume that the projects hav...

A: The question involves the capital budgeting process to measure the worthiness of different investmen...

Q: Explain Effective Cost of Two or More Loans?

A: When there is the existence of a situation, where the borrower takes an option to finance the proper...

Q: Project P has a cost of $1,000 and cash flows of $300 per year for3 years plus another $1,000 in Yea...

A: The calculation is:

Q: Identify unique characteristics of budgeting for service companies

A: A service corporation, rather than selling physical goods, is an organization that sells earnings. A...

Q: A manager is trying to decide whether to buy one machine or two. If only one machine is purchased an...

A: Introduction Expected Payoff is the amount which an individual expects to gain under the particular ...

Q: Gardial & Son has an ROA of 12%, a 5% profit margin, and a return onequity equal to 20%. What is...

A: Given information: Company’s ROA is 12%, Profit margin is 5%, Return on equity (ROE) is 20%, Number ...

Q: Any investment project carries a variety of risks. Outline possible ways through which the risk fact...

A: Any investment project involves the allocation of large amount of company funds and resources, thus,...