Given the data in Problem and an alternative hybrid vehicle with the specifications shown below:
a) What is the crossover point in miles?
b) Which vehicle is has the lowest cost until the crossover point is reached?
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Vehicle Purchase Cost
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$29,000
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Vehicle Operating Cost per Mile
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$0.08
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Useful Life of Vehicle
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10 years
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Miles per year
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18,000
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Miles per gallon
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40
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Average fuel Price per gallon
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$2.55
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Problem - Hartley Auto Supply delivers parts to area auto service centers and is replacing its fleet of delivery vehicles. What is the total vehicle life-cycle cost of this gasoline engine truck given the information provided in the following table?
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Vehicle Purchase Cost
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$25,000
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Vehicle Operating Cost per Mile
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$0.13
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Useful Life of Vehicle
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10 years
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Miles per year
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18,000
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Miles per gallon
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25
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Average fuel Price per gallon
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$2.55
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