A new technological line of gasoline production has the following parameters:
- annual production is 20,343 litres;- purchase price is $86,748- operatining costs are $904 per year; - depreciation rate is 20%;- service life is 5 years
Expected annual inflation is 4%. If current interest rate is 10%, what is the unit cost of gasoline in dollars per litre in real terms?
solve without using excel and show full work for thumbs up please
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