Prepare a worksheet for the following problem:
You are looking to buy a car. You are considering two options: to buy a
second hand car and keep it for ten years or to buy a new car and keep it for
four years. The depreciation per year is simply the difference between the
purchase price and the resale price divided by the numbers of years. The
total running cost per year is the sum of service/repair cost, the fuel cost per
year (miles per year multiplied by fuel cost per mile) , the tax and the
insurance. The total cost per year is the sum of the depreciation and the
running costs. You are supposed to calculate average depreciation per
year, fuel cost per year, total running cost per year and total cost per
year for both the options. Type in labels: car purchase option, initial cost,
resale, years ,average depreciation per year, running cost, services/repairs
per year, miles per year, fuel cost per mile, fuel cost per year, tax, insurance,
total running cost and total cost per year. Prepare the worksheet having all
the details as given below:
| Car Purchase option | ||
| Option1 | Opton2 | |
| Initial cost | $ 10,000 | $ 17,000 |
| Resale | $ 1,000 | $ 12,000 |
| Years | $ 10 | $ 4 |
| Average depreciation per year | ||
| Running Cost | ||
| Services/Repiar per year | $ 350 | $ 250 |
| Miles Per year | $ 5,000 | $ 5,000 |
| Fuel cost per mile | $ 0.20 | $ 0.17 |
| Fuel cost per year | ||
| Tax | $ 450 | $ 450 |
| Insurance | $ 800 | $ 800 |
| Total Running Cost | ||
| Total Cost Per year |
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