Question

1). a) A company has two alternatives for satisfying its daily travel requirement of its employees for the next
five years
Alternative 1: renting a vehicle at a cost of 1000000 per years
Alternative 2: buying a vehicle for 500000 with an operating and maintenance cost of * 350000 per year.
The salvage value of the vehicle after five year is 100000.
Select the best alternative based on the present worth method of comparison using the interest rate of 20%
compounded annually.
b) Define depreciation, book value and financial ratio.​

Answer 1

Answer:

alernative 2

Explanation:

bcz u will save money