Business, 02.04.2020 19:31 amandasantiago2001

As a traveling salesman for Initech, Gabe spends a lot of time in his car. He is interested in purchasing a new (2020) Toyota Prius for $27,900 to reduce his environmental and financial impacts. The dealer suggests that the car will last for 15 years but that the battery will need to be replaced every 7 years. Each battery will cost $3,200 (regardless of the year of purchase), which includes the new battery and disposal of the spent battery. In addition to maintenance costs, which he estimates to be $536 per year, Gabe will also need to periodically recharge the battery. After investigating the local charging options, he believes that it will cost $0.06/mile driven to recharge the battery. At the end of the 15 year life of the car Gabe expects the car will have a salvage value of $3,250. Old batteries have no residual value. Gabe's MARR is 7% and he believes that he will drive 41,000 miles each year he owns the car. What is the cost per mile to own and operate this Prius?

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As a traveling salesman for Initech, Gabe spends a lot of time in his car. He is interested in purch...

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