A company must decide whether to provide their salesmen with company-owned automobiles or to pay the salesmen a mileage allowance and have them drive their own automobiles. New automobiles would cost about $18,000 each and could be resold 4 years later for about $7000 each. Annual operating costs would be $600 per year plus 12cents per mile. If the salesmen drove their own automobiles, the company probably would pay them 30cents per mile. Calculate the number of miles each salesman would have to drive each year for it to be economically practical for the company to provide the automobiles. Assume a 10% annual interest rate. Use net present value analysis.
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Constituent Assembly adopted the Constitution of India, drafted by a committee headed by Dr. B. R. Ambedkar, on 26 November 1949. India became a sovereign democratic republic after its constitution came into effect on 26 January 1950.
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