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...


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



Jun 10, 2022
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