Diesel engine taxis should be chosen.
Explanation:
Useful life = 5 years
Annual distance covered = 80000 km
For a diesel car
Annual fuel cost = (80000/16)*.88 = $4400
Present value of total cost = vehicle cost + present value of the fuel cost + present value of annual repair cost + present value of annual premium – present value of resale value
Present value of total cost = 24000 + 4400*(1-1/1.06^5)/.06 + 900*(1-1/1.06^5)/.06 + 1000*(1-1/1.06^5)/.06 - 4000/1.06^5
Present value of total cost = $47548.86
Let, uniform annual cost = EUAC1
Then, EUAC1 = 47548.86/((1-1/1.06^5)/.06)
EUAC1 = $11287.93
For a gasoline car
Useful life = 4 years
Annual fuel cost = (80000/11)*.92 = $6690.91
Present value of total cost = vehicle cost + present value of the fuel cost + present value of annual repair cost + present value of annual premium – present value of resale value
Present value of total cost = 19000 + 6690.91*(1-1/1.06^4)/.06 + 700*(1-1/1.06^4)/.06 + 1000*(1-1/1.06^4)/.06 - 6000/1.06^4
Present value of total cost = $43322.83
Let, uniform annual cost = EUAC2
Then, EUAC2 = 43322.83/((1-1/1.06^4)/.06)
EUAC2 = $12502.6
Conclusion: The diesel engine taxis should be chosen because it offers relatively lower uniform annual cost compared to the gasoline engine taxis
B, the management of money and things that are worth money.
Explanation:
Finance is defined as management of money and things involved in it such as investments, borrowing, lending, and so on.