Order the answer to: A sales engineer has the following

Custom Essays business-economics Order the answer to: A sales engineer has the following

business-economics

Order the answer to: A sales engineer has the following

Question A sales engineer has the following alternatives .to consider in touring his sales territory. (a) Buy a new car for $14,500. is expected to be about $5000 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% incremental tax bracket. Use MACRS .
Subject business-economics
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