Order the answer to: A company must decide whether to provide their salesmen with

Assignment Help business economics Order the answer to: A company must decide whether to provide their salesmen with

business economics

Order the answer to: A company must decide whether to provide their salesmen with

Question A company must decide whether to provide their salesmen with company-owned automobiles or to pay the salesmen a mileage allowance and have them drive their own automobiles. New automobiles would cost about $18,000 each and could be resold 4 years later for about $7000 each. Annual operating costs would be $600 per year plus 12, t per mile. If the salesmen drove their own automobiles, the company probably would pay those 30 per mile. Calculate the number of miles each salesman would have to drive each year for it to be economically practical for the company to provide the automobiles. Assume a 10% annual interest rate. Use an annual cash flow analysis.
Subject business economics
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