Dokumen (38).docx - 3-32 : Opportunity loss table Lease...

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3-32 :Opportunity loss tableLeaseoption36000 miles driven45000 miles driven54000 miles drivenOption 111880 - 11880 = 015030 - 13680 = 135018180 - 15480 = 2700Option 213680 - 11880 = 180013680 - 13680 = 015930 - 15480 = 450Option 315480 - 11880 = 360015480 - 13680 = 180015480 - 15480 = 0
The maximum regrets are 2700 for option 1, 1800 for option 2, and 3600 for option 3.Option 2 isselected because 1800 is lower than the other maximums.EOL(option 1) = 0(0.4) + 1350(0.3) + 2700(0.3) = 1215EOL(option 2) = 1800(0.4) + 0(0.3) + 450(0.3) = 855EOL(option 3) = 3600(0.4) + 1800(0.3) + 0(0.3) = 1980Option 2 has the lowest EOL, so this alternative is selected based on the EOL criterion.3-31;a.For a 3-year lease, there are 36 months of payments.Option 1 total monthly payments: 36($330) = $11,880Option 2 total monthly payments: 36($380) = $13,680Option 3 total monthly payments: 36($430) = $15,480Excess mileage costs based on 36,000 mileage allowance for Option 1, 45,000 for Option 2, and54,000 for option 3.Option 1 excess mileage cost if 45,000 miles are driven = (45000 - 36000)(0.35) = 3150Option 1 excess mileage cost if 54,000 miles are driven = (54000 - 36000)(0.35) = 6300
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Term
Winter
Professor
Setiawan
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