Question

a construction manager just starting in private practice needs a van to carry crew and equipment. she can lease a used van for $3,596 per year, paid at the beginning of each year, in which case maintenance is provied. alternatively, she can buy a used van for $5,721 and pay for maintenance herself. she expects to keep the van for three years at which time she could sell it for $1,052. what is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her marr is 20%?

Answer 1

The most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her Marr is 20% is $1,379.5.

Annual lease rent= $3,596

Cost of used van= $5,721

Salvage value= $1,052

Net cost to manager= 5721-1052= $4,669

PVFA, (20%) =2.1065

Equivalent annual cost of the equipment= 4669/2.1065= $2,216.5

Therefore, the most the manager should pay for Maintenace to make it worthwhile to buy the machine instead of leasing it is = 3596-2216.5= $1,379.5

Construction managers, frequently referred to as well-known contractors or undertaking managers, coordinate and supervise a number of projects, which includes constructing public, residential, commercial, and business systems in addition to roads and bridges.

Construction management calls for a variety of duty and tough work: You may be in fee of a creation undertaking from starting to end. In order to get the process done, there are vital features that a creation supervisor have to possess. According to the BLS, those include Analytical skills.

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