Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a sales engineer has the following alternatives to

A sales engineer has the following alternatives to consider in touring his sales territory. a)...

60.1K

Verified Solution

Question

Accounting

A sales engineer has the following alternatives to consider in touring his sales territory. a) Buy a new car for $14,500. Salvage value is expected to be about $5,000 after 3 years. Maintenance and insurance cost is $1000 in the first year and increases at the rate of $500/year in subsequent years. Daily operating expenses are $50/day b) Rent a similar car for $80/day Based on a 12% after-tax rate of return, how many days per year must he use the car to justify its purchase? You may assume that this sales engineer is in the 30% corporate incremental tax bracket. Use MACRS depreciation.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

Although rare, tied swimming races occur with some frequency. In fact, at the 2016 Olympics...

Biology
1.2K views

The Earth first cooled to form solid rock...6.5 billion years ago4.5 billion years ago3.8 billion...

Physics
1.2K views

151 If the same amount of heat is supplied to two spheres of the same...

Physics
1.2K views

Consider a uniform cubical box of side a on a rough floor that is to...

Physics
1.2K views

If the potential difference V applied across a conductor is increased to 2V with its...

Physics
1.2K views

24 2 7 kg 3 17 kg 4 3 kg The force F acting on...

Calculus
1.2K views

Find the volume of a parallelepiped with one of its eight vertices at A 0...

Algebra
1.2K views

8 Solve the system of equations x y 17 y 5z 4 x 11z 17...

Algebra
1.2K views

If three more than twice x is added to x divided by 4 what is...

Accounting
1.2K views

Full cost V cost Sheet3 Padre Inc., a...

Accounting
1.2K views

Differential Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using...

Finance
1.2K views

please do 4.23!!! with notes in how to input this into tibaII calculator. ...