TG Industries Is Considering Investing in a Fleet of Six

question 17

Multiple Choice

TG Industries is considering investing in a fleet of six delivery vehicles. The annual running costs are expected to total $90,000 per vehicle, including the driver's salary. The vehicles are expected to operate for a total of five years. At present TG Industries uses a commercial carrier for its deliveries. The commercial carrier is expected to charge a total of $400,000 for each of the next five years to make the deliveries. What is the estimated net annual cash cost saving on delivery vehicle running costs if TG Industries invests in the fleet of six vehicles?

• A) $400,000
• B) $310,000
• C) $140,000
• D) $90,000

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Definitions:

Mode

The value that appears most frequently in a data set, representing the most common or popular outcome among a set of observations.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Variation

The occurrence of differences or deviations within a population, which can be genetic, phenotypic, or behavioral, among individuals or groups.

Median

A statistical measure that represents the middle value in a dataset, where half the numbers are above and half are below.