Answered: VEHICLE PURCHASE COST $17,000 VEHICLE…

VEHICLE PURCHASE COST $17,000 VEHICLE OPERATING COST PER MILE $0.12 USEFUL LIFE OF VEHICLE 15 years MILES PER YEAR 14,000 MILES PER GALLON 32 AVERAGE FUEL PRICE PER GALLON $3.75

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

What is the total vehicle life cycle cost of this hybrid
car, given the information provided in the following table?

VEHICLE PURCHASE COST
$17,000
VEHICLE OPERATING COST PER MILE $0.12
USEFUL LIFE OF VEHICLE
15 years
MILES PER YEAR
14,000
MILES PER GALLON
32
AVERAGE FUEL PRICE PER GALLON
$3.75

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