A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The cars average 80,000 km a year. Use an annual cash flow analysis to determine the more economical choice if interest is 6%. Diesel Gasoline Vehicle cost Useful life, in years Fuel cost per liter Mileage, in km/liter Annual repairs Annual insurance premium End-of-useful-life resale value $24,000 $19,000 4 920 5 880 16 1,000 4.000 $ 900 700 1,000 6,000
