Basic Investment Method Question

An electric car can be purchased for $2.75M. The car is estimated to have a life of 12 years with annual travelling of 32187 KM. Every 3 years, a new set of batteries will have to be purchased at a cost of $330K. Annual maintenance of vehicle is estimated to be $770K per year. The cost of recharging the batteries is estimated to be $2.64 per KM. The salvage value of the batteries and the vehicle at the end of 12 years is estimated at $200K. Prevailing interest is 8% per annum. The batteries are a net value with old batteries traded in for new ones. What is the cost per kilometer to own and operate this type of vehicle if cost per liter is $46 running at 15 kilometers per liter
Anonymous User
Anonymous User
Asked Nov 25, 2016
Edited Nov 25, 2016

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