Question

? The choice has to be
made by Mr. Abhishek
between a new bike and a
second-hand bike. The relvant
data are: If Abhishek invest
Rs. 15,000 or Rs. 5000
elsewhere, he except a return
of 10%. Using the annual cost
method, find out whether
Abhishek should go for new
bike or the second-hand bike?
Image
New bike
15,000
5,000
Second hand bike
5,000
Zero
Initial investment (Rs.)
Salvage value after 10 years
of use (Rs.)
Annual fuel cost for average
10,000 miles run (Rs.)
Annual repair cost (Rs.)
1,000
1,500
1,000
3,000​

Answer 1

Thanks for the points, you can of course report it. I don't care...