Car a initially costs 500 more than car b but it consumes, Ask an Expert

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Car A initially costs $500 more than Car B, but it consumes 0.04 gallon/mile versus 0.05 gallon/mile for B. Both vehicles last 8 years, and B's salvage value is $100 smaller than A's. Fuel costs $1.70 per gallon. Other things being equal, which option is more preferable at 2000 miles/year?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707567

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