Frank Is Considering Transportation Modes to a Client's Office

question 56

Multiple Choice

Frank is considering transportation modes to a client's office. He can drive his own car, at an incremental cost of $0.55 per mile, or take a company car. If he takes his own car, he can be reimbursed $0.45 per mile. If Frank makes his decision strictly from his personal economic point of view, what is the relevant net cost associated with driving his own car?

• A) $0.10
• B) $0.45
• C) $0.55
• D) Some other amount