3232ex6-2 - Ex6.2 Cost reimbursement Car value $11,000:...

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Unformatted text preview: Ex6.2 Cost reimbursement Car value $11,000: needed for full time job Question: What is the minimum employer reimbursement per km to to break even assuming the car value is not amortized. The business' perspective. MARR = 6% Distance (km) 14,500 13,000 11,500 Required distance can be met on one set of tires Projected costs: Item 1st year 2nd year 3rd year Depreciation 2879 1776 1565 4780 As-is car value after 3 years Schedule Maintenance 100 132 172 Insurance 635 635 635 Registration 78 78 78 Total Ownership Cost 3692 2621 2450 Non-Scheduled repairs 70 115 227 Accessories 15 13 12 Gas with taxes 688 650 522 Oil 80 100 100 Total Operating Costs 853 878 861 Total Cost 4545 3499 3311 Parking and tolls to be itemized and expensed directly Not responsible for wear when car isn't used for job Distance (km) 14,500 13,000 11,500 Projected costs: Item 1st year 2nd year 3rd year Total Depreciation 2879 1776 1565 Schedule Maintenance 100 132 172 Insurance 635 635 635 Registration 78 78 78 Total Ownership Cost...
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This note was uploaded on 11/19/2010 for the course ME 3232 taught by Professor Lyon during the Fall '10 term at University of New Brunswick.

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3232ex6-2 - Ex6.2 Cost reimbursement Car value $11,000:...

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