Thursday, 13 October 2016

Microsoft Excel Rate Depreciation List for Car Sale

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
Option1Opton2
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

Download Excel File