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02-11-2022
Business

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tyrella jackson is buying a used car. alternative a is an americanbuilt compact. it has an initial cost of $8900 and operating costs of 9c/km, excluding depreciation. from resale statistics, tyrella estimates the american car can be resold at the end of 3 years for $1700. alternative b is a foreign-built fiasco. its initial cost is $8000, the operating cost, also excluding depreciation, is 8 /km. how low could the resale value of the fiasco be to provide equally economical transportation? assume tyrella will drive 12,000 663 km/year and considers 8% as an appropriate interest rate

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