The First cost of a passenger bus is ₽800,000. Its estimated life is 4 years with no salvage value. The operating cost per year of 300 days of operation are as follows: Tires, ₽24,000; gasoline, 60 liters per day at ₽15 per liter; Oil, ₽80 per day; maintenance and repair, ₽40,000; labor ₽800 per day; miscellaneous expense, ₽18,000; depreciation, sinking fund at 10%. If the average passenger fare is ₽3.50 for each passenger one way and expected profit or return is 15% determine the minimum average number of passengers that should be transported each day. Use the Annual Worth method and future worth method. Please also include the solution of finding the annual income.
The First cost of a passenger bus is ₽800,000. Its estimated life is 4 years with no salvage value. The operating cost per year of 300 days of operation are as follows: Tires, ₽24,000; gasoline, 60 liters per day at ₽15 per liter; Oil, ₽80 per day; maintenance and repair, ₽40,000; labor ₽800 per day; miscellaneous expense, ₽18,000; depreciation, sinking fund at 10%. If the average passenger fare is ₽3.50 for each passenger one way and expected profit or return is 15% determine the minimum average number of passengers that should be transported each day. Use the Annual Worth method and future worth method. Please also include the solution of finding the annual income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The First cost of a passenger bus is ₽800,000. Its estimated life is 4 years with no salvage value.
The operating cost per year of 300 days of operation are as follows: Tires, ₽24,000; gasoline, 60
liters per day at ₽15 per liter; Oil, ₽80 per day; maintenance and repair, ₽40,000; labor ₽800 per
day; miscellaneous expense, ₽18,000;
passenger fare is ₽3.50 for each passenger one way and expected profit or return is 15%
determine the minimum average number of passengers that should be transported each day.
Use the Annual Worth method and future worth method. Please also include the solution of finding the annual income.
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