TG Industries Is Considering Investing in a Fleet of Six

question 28

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 $680,000 for each of the next five years to make the deliveries. What is the estimated net annual cash cost saving on delivery vehicle running cost if TG industries invests in the fleet of six vehicles?

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

---

Definitions:

Sensory Store

A very brief type of memory that holds incoming information from the senses for a very short duration, nearly half a second for visual information and a few seconds for auditory information.

Rehearsal

A cognitive process involving the repeated practice of material to be remembered, aiming to enhance memory retention.

Retain Information

Retaining information involves the capacity to hold onto and recall knowledge or data over time, a fundamental aspect of learning and memory function.

System

An organized set of interrelated components that function together as a whole to achieve a specific goal.