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on to view the interest factors for discrete compounding when i=7% per year. hent rate should be $ per mile. (Round to the nearest cent.) More Info Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, I, N) 1.0700 0.9346 1.1449 0.8734 1.2250 0.8163 1.3108 0.7829 1.4026 0.7130 1.5007 0.6683 0.6227 1.6058 1.7182 0.5820 1.8385 0.5439 1.9672 0.5083 SAWNIN 1 2 3 4 67899 10 Compound Amount Factor (F/A, i, N) 1.0000 2.0700 3.2149 4.4399 5.7507 7.1533 8.6540 10.2598 11.9780 13.8164 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 0.9348 0.4831 1.8080 0.3111 2.6243 0.2252 3.3872 0.1739 4.1002 0.1398 4.7885 0.1156 5.3893 0.0975 5.9713 0.0835 6.5152 0.0724 7.0238 (...) Capital Recovery Factor (A/P, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 0.2008 0.1856 0.1675 0.1535 0.1424 X More Info Depreciation Scheduled maintenance Insurance Registration and taxes Total ownership cost Nonscheduled repairs Replacement tires Accessories Gasoline and taxes Oil Parking and tolls Total operating costs Total of all costs Expected miles driven First Year Second Year $2,879 $1,776 100 153 635 635 78 57 $3,692 $2,621 35 35 15 688 80 135 $988 $4,680 14,500 85 30 13 650 100 125 $1,003 $3,624 13,000

on to view the interest factors for discrete compounding when i=7% per year. hent rate should be $ per mile. (Round to the nearest cent.) More Info Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, I, N) 1.0700 0.9346 1.1449 0.8734 1.2250 0.8163 1.3108 0.7829 1.4026 0.7130 1.5007 0.6683 0.6227 1.6058 1.7182 0.5820 1.8385 0.5439 1.9672 0.5083 SAWNIN 1 2 3 4 67899 10 Compound Amount Factor (F/A, i, N) 1.0000 2.0700 3.2149 4.4399 5.7507 7.1533 8.6540 10.2598 11.9780 13.8164 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 0.9348 0.4831 1.8080 0.3111 2.6243 0.2252 3.3872 0.1739 4.1002 0.1398 4.7885 0.1156 5.3893 0.0975 5.9713 0.0835 6.5152 0.0724 7.0238 (...) Capital Recovery Factor (A/P, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 0.2008 0.1856 0.1675 0.1535 0.1424 X More Info Depreciation Scheduled maintenance Insurance Registration and taxes Total ownership cost Nonscheduled repairs Replacement tires Accessories Gasoline and taxes Oil Parking and tolls Total operating costs Total of all costs Expected miles driven First Year Second Year $2,879 $1,776 100 153 635 635 78 57 $3,692 $2,621 35 35 15 688 80 135 $988 $4,680 14,500 85 30 13 650 100 125 $1,003 $3,624 13,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 2.2CE
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Jennifer Ozman is a sales engineer at Montana Chemical Engineering Company. Jennifer owns two vehicles, and one of them is entirely dedicated to business use. Her business car is a small, used pickup truck, which she purchased with $11,000 of personal savings. On the basis of her own records and with data compiled by the U.S. Department of Transportation, Jennifer has estimated the costs of owning and operating her business vehicle for the first three years as given in the table below. If her interest rate is 7%, what should be Jennifer's reimbursement rate per mile so that she can break even? Click the icon to view the costs of owning and operating the business vehicle. Click the icon to view the interest factors for discrete compounding when i=7% per year. The reimbursement rate should be $ per mile. (Round to the nearest cent.) - X More Info More Info Single Payment Compound Amount Factor (F/A, i, N) Third Year First Year $2,879 Second Year $1,776 153 N $1,545 220 100 1.0000 635 835 6:35 2,0700 78 57 3.2149 $3,692 $2,621 85 50 $2,450 200 4.4399 35 35 5.7507 27 30 15 13 12 688 522 7.1533 80 100 8.6540 135 110 10.2598 $988 $971 11.9780 $4,680 $3,421 13.8164 14,500 11,500 JAWN- 5 6 7 8 9 10 Compound Amount Factor (F/P, i, N) 1.0700 1.1449 1.2250 1.3108 1.4028 1.5007 1.6058 1.7182 1.8385 1.9672 Present Worth Factor (P/F, i, N) 0.9346 0.8734 0.8163 0.7829 0.7130 0.6683 0.6227 0.5820 0.5439 0.5083 Equal Payment Series Sinking Present Fund Factor (A/F, i, N) Worth Factor (P/A, i, N) 1.0000 0.9346 0.4831 1.8080 0.3111 2.8243 0.2252 3.3872 0.1739 4.1002 0.1398 4.7665 0.1156 5.3893 0.0975 5.9713 0.0835 6.5152 0.0724 7.0238 Capital Recovery Factor (A/P, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 0.2098 0.1856 0.1675 0.1535 0.1424 Depreciation Scheduled maintenance Insurance Registration and taxes Total ownership cost Nonscheduled repairs Replacement tires Accessories Gasoline and taxes Oil Parking and tolls Total operating costs Total of all costs Expected miles driven 650 100 125 $1,003 $3,624 13,000
Transcribed Image Text:Jennifer Ozman is a sales engineer at Montana Chemical Engineering Company. Jennifer owns two vehicles, and one of them is entirely dedicated to business use. Her business car is a small, used pickup truck, which she purchased with $11,000 of personal savings. On the basis of her own records and with data compiled by the U.S. Department of Transportation, Jennifer has estimated the costs of owning and operating her business vehicle for the first three years as given in the table below. If her interest rate is 7%, what should be Jennifer's reimbursement rate per mile so that she can break even? Click the icon to view the costs of owning and operating the business vehicle. Click the icon to view the interest factors for discrete compounding when i=7% per year. The reimbursement rate should be $ per mile. (Round to the nearest cent.) - X More Info More Info Single Payment Compound Amount Factor (F/A, i, N) Third Year First Year $2,879 Second Year $1,776 153 N $1,545 220 100 1.0000 635 835 6:35 2,0700 78 57 3.2149 $3,692 $2,621 85 50 $2,450 200 4.4399 35 35 5.7507 27 30 15 13 12 688 522 7.1533 80 100 8.6540 135 110 10.2598 $988 $971 11.9780 $4,680 $3,421 13.8164 14,500 11,500 JAWN- 5 6 7 8 9 10 Compound Amount Factor (F/P, i, N) 1.0700 1.1449 1.2250 1.3108 1.4028 1.5007 1.6058 1.7182 1.8385 1.9672 Present Worth Factor (P/F, i, N) 0.9346 0.8734 0.8163 0.7829 0.7130 0.6683 0.6227 0.5820 0.5439 0.5083 Equal Payment Series Sinking Present Fund Factor (A/F, i, N) Worth Factor (P/A, i, N) 1.0000 0.9346 0.4831 1.8080 0.3111 2.8243 0.2252 3.3872 0.1739 4.1002 0.1398 4.7665 0.1156 5.3893 0.0975 5.9713 0.0835 6.5152 0.0724 7.0238 Capital Recovery Factor (A/P, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 0.2098 0.1856 0.1675 0.1535 0.1424 Depreciation Scheduled maintenance Insurance Registration and taxes Total ownership cost Nonscheduled repairs Replacement tires Accessories Gasoline and taxes Oil Parking and tolls Total operating costs Total of all costs Expected miles driven 650 100 125 $1,003 $3,624 13,000
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