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There are several assumptions that I made that may very well be questioned resembling the idea (made implicit by its absence in the above chart) that the salvage worth of the autos after 10 years will be the same. Also, a discount charge of 7% might be debated however that’s simply a part of the enjoyable with current value analyses. While I have started with a better than present market gasoline price I assumed 3% annual growth for gasoline prices and with the volatility in the oil markets this will prove to be far off the mark. There are extra assumptions which were made in this analysis however I won’t go into them.
I just hope … Read More ...