Brand B car costs $79,000 and has a life of 8 years. It costs $2,500 a year in insurance, and $525 a year in fuel consumption. Brand M car costs $67,000 and has a life of 6 years. It costs $2,100 a year in insurance and $600 a year in fuel consumption. If the discount rate is 6% p.a. compounded annually, which kind of car is cheaper to run
Brand B car costs $79,000 and has a life of 8 years. It costs $2,500 a year in insurance, and $525 a year in fuel consumption. Brand M car costs $67,000 and has a life of 6 years. It costs $2,100 a year in insurance and $600 a year in fuel consumption. If the discount rate is 6% p.a. compounded annually, which kind of car is cheaper to run
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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0. Brand B car costs $79,000 and has a life of 8 years. It costs $2,500 a year in
insurance, and $525 a year in fuel consumption. Brand M car costs $67,000 and has a life of
6 years. It costs $2,100 a year in insurance and $600 a year in fuel consumption. If the
discount rate is 6% p.a. compounded annually, which kind of car is cheaper to run?
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