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What is the cost per mile to own and operate this vehicle, according to the foregoing estimates?

01 / 10 / 2021 Projects

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An electric automobile can be purchased

An electric automobile can be purchased for $25,000. The automobile is estimated to have a life of 12 years, with an nual travel of 20,000 miles. Every 3 years, a new set of batteries will have to be purchased at a cost of $3000. The $3000 cost of the batteries is a net value, with the old batteries traded in for the new ones. Annual maintenance of the vehicle is estimated to cost $700 per year. The cost of recharging the batteries is estimated at $0.015 per mile. The salvage value of the batteries and the vehicle at the end of 12 years is estimated at $2000. Consider the MARR to be 7%. What is the cost per mile to own and operate this vehicle, according to the foregoing estimates?



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