a. Calculate the total “true” cost for each vehicle over the 5-year ownership period.
b. Calculate the total fuel cost for each vehicle over the 5-year ownership period.
c. What is the marginal fuel cost from purchasing the larger V-8 SUV?
d. What is the marginal cost of purchasing the larger and more expensive V-8 SUV?
e. What is the total marginal cost associated with purchasing the V-8 SUV?
How does this figure compare with the $14,060 that Jimmy calculated? Note: lanore the time value of monev in vour calculations. :
a. The true cost of the V-6 model is $. (Round to the nearest dollar.) Data table The true cost of the V-8 model is $. (Round to the nearest dollar.)
b. The fuel cost of the V-6 model is $ . (Round to the nearest dollar.) V-6 V-8 The fuel cost of the V-8 model is $. (Round to the nearest dollar.)
c. The marginal fuel cost from purchasing the V-8 model is $(Round to the nearest dollar.)
d. The marginal cost of purchasing the V-8 model is $7. (Round to the nearest dollar) MSRP Engine (liters) Cylinders Depreciation over 5 years Finance charges over entire 5-year period Insurance over 5 years Taxes and fees over 5 years Maintenance/repairs over 5 years Average miles per gallon Ownership period in years Miles driven per year over 5 years Cost per gallon of gas over 5-year ownership $30,260 3.7 6 $17,337 $5,171 $7,546 $2,179
e. The total marginal cost associated with purchasing the V-8 model is $(Round to the nearest dollar. How does this figure compare with the $14,060 that Jimmy calculated? $44,320 5.7 8 8 $25,531 $7.573 $8,081 $2,937 $5,600 14 5 15,000 $3.15 $5,600 The true marginal cost is than the difference between the costs of the two vehicles. (Select from 19 5 15,000 $3.15 lower Print Done higher
