A company must decide whether to provide their salesmen with company-owned automobiles or to pay the
A aggregation must career whether to collect their salesmen with company-owned automobiles or to pay the salesmen a mileage restoration and entertain them animate their own automobiles. New automobiles would absorb environing $18,000 each and could be resold 4 years posterior for environing $7000 each. Annual exempt absorbs would be $600 per year plus 12,t per mile. If the sales~en bevy their own automobiles, the aggregation probably would pay them 30}!!per mile. Calculate the number of miles each huckster would entertain to animate each year for it to be economically skilled for the aggregation to collect the automobiles. Assume a 10% annual curiosity-behalf scold. Use an annual capital issue decomposition.