Question content area top Part 1 MSRP $30,340 $44,740 Engin (liters) 3.7 5.7 Cylinders 6 8 Depreciatio

[answerhappygod]

Question content area top
Part 1
MSRP $30,340 $44,740
Engin (liters) 3.7 5.7
Cylinders 6 8
Depreciation over 5 years $17,383
$25,773
Finance charges over rntire 5-year period
$5,282 $7,789
Insurance over 5 years $7,566
$8,158
Taxes and fees over 5 years $2,185
$2,965
Maintenance/repairs over 5 years
$6,000 $6,000
Average miles per gallon 19
14
Ownership period in years 5
5
Miles driven per year over 5 years
17,000 17,000
Cost per gallon of gas over 5-year ownership
$3.12 $3.12
Marginal costs  Personal Finance Problem   Jimmy Johnson is
interested in buying a new Jeep SUV. There are two options​
available, a​ V-6 model and a​ V-8 model. Whichever model he​
chooses, he plans to drive it for a period of
5
years and then sell it. Assume that the​ trade-in value of the
two vehicales at the end of the
5​-year
ownership period will be identical.There are definite
differences between the two models and Jimmy needs to make a
financial comparison. The​ manufacturer's suggested retail price​
(MSRP) of the​ V-6 and​ V-8 are
$30,340
and
$44,740​,
respectively. Jimmy believes the difference of
$14,400
to be the marginal cost difference between the two
vehicles.​However, there is much more data​ available, and you
suggest to Jimmy that his analysis may be too simple and will lead
him to a poor financial decision. Assume that the prevailing
discount rate for both vehicles is
5.6%
annually. Other pertinent information on this purchase is shown
in the following​ table:
LOADING...
.a.  Calculate the total​ "true" cost for each vehicle over
the
5​-year
ownership period.b.  Calculate the total fuel cost for each
vehicle over the
5​-year
ownership period.
c.  What is the marginal fuel cost from purchasing the larger​
V-8 SUV?
d.  What is the marginal cost of purchasing the larger and more
expensive​ V-8 SUV?
e.  What is the total marginal cost associated with purchasing
the​ V-8 SUV? How does this figure compare with the
$14,400
that Jimmy​ calculated?
​Note: Ignore the time value of money in your calculations.
Question content area bottom
Part 1
a.  The true cost of the​ V-6 model is
​$enter your response here.
​(Round to the nearest​ dollar.)
Part 2
The true cost of the​ V-8 model is
​$enter your response here.
​(Round to the nearest​ dollar.)
Part 3
b.  The fuel cost of the​ V-6 model is
​$enter your response here.
​(Round to the nearest​ dollar.)
Part 4
The fuel cost of the​ V-8 model is
​$enter your response here.
​(Round to the nearest​ dollar.)
Part 5
c.  The marginal fuel cost from purchasing the​ V-8 model is
​$enter your response here.
​(Round to the nearest​ dollar.)
Part 6
d.  The marginal cost of purchasing the​ V-8 model is
​$enter your response here.
​(Round to the nearest​ dollar.)
Part 7
e. The total marginal cost associated with purchasing the​ V-8
model is
​$enter your response here.
​(Round to the nearest​ dollar.)
Part 8
How does this figure compare with the
$14,400
that Jimmy​ calculated?The true marginal cost is
▼
higher
lower
than the difference between the costs of the two
vehicles.  ​(Select from the​ drop-down menu.)