Ron is looking forward to purchase a good car for himself. After a research he had found that Toyota Camry, Honda Accord, Ford Fusion fit into his budget and that he likes its specifications.
|
|
Toyota Camry[1]
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Honda Accord[2]
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Ford Fusion[3]
|
|
Investment
|
$22,055
|
$22,280
|
$22,975
|
|
Fuel Costs
|
$1,860
|
$1,966.4
|
$1,905.4
|
|
Maintenance
|
$264
|
$322
|
$372.8
|
|
Efficiency
|
$219
|
$0
|
$238.18
|
|
Insurance
|
$1,373
|
$1,216
|
$1,447
|
|
Market Value
|
$11,271
|
$12,280
|
$16,106
|
The above table shows the various costs related to product purchase and maintenance and also points out the market value.
The MARR is 10% and the useful period is 5 years and annual benefit for each car is $8,000. Ron wanted to take the car with the best benefit to cost ratio.