Sign In
Not register? Register Now!
Essay Available:
1 page/≈275 words
No Sources
Mathematics & Economics
Statistics Project
English (U.S.)
MS Word
Total cost:
$ 5.18

Hackney Rent A Car. Mathematics & Economics Statistics Project (Statistics Project Sample)


just use those excel to do the conclusion: state what Hackney should do in terms of the purchase option and fleet mix, with supporting explanation for the analysis


Team Case 1 HACKNEY-RENT-A-CAR The management at Hackney's Southwestern Regional (HSR) are interested in determining the optimalfleet purchase mix for the coming year. There are four types of vehicles that can be purchased: standard, intermediate, compact and subcompact. All cars purchased are depreciated and paid off for over a two-year period, after which they are sold in a secondary market. Table 1 presents the wholesale purchase price and revenues(the second year includes the resale value) over the two-year period for each type of car: Table 1 - Purchase Price and Net Revenue Summary Type Price ($) 1st yr. ($) 2nd yr. ($) Standard 20,000 14,000 23,000 Intermediate 15,000 9,000 15,000 Compact 12,000 7,000 13,000 Subcompact 9,000 5,000 9,000 HSR has established a budget of $5 million for funding the purchases this year. It can either pay the entire amount for the cars or make a down payment and pay the remaining balance over a two-year period. The financing company requires at least a 20% down payment and that at least 50% of the purchase price plus interest must be paid by the end of the first year. The financing company is currently charging 8%. HSR uses a 10% discount rate for financial planning. Hackney management estimates that they can rent all of the cars that are purchased. However, in order to meet overallmarket demand they wish that each vehicle category represent at least 15 percent and no more than 50 percent of the total number of vehicles purchased. Deliverable Instructions Two LP models should be included with your Hackney submission, one for cash purchase and one for the financing option. Be sure that the case report introduction address all assumptions associated with this problem. For each payment option, determine the optimal solutions. Conduct the following sensitivity analysis: how does the solution change if the interest rate is only 6%? Also, what would be the impact of using a fleet mix of 25% each car type? Conclusions should clearly state what Hackney should do in terms of the purchase option and fleet mix, with supporting explanation for the analysis.


Statistics Project
Author Name
Institution Affiliation
From the given data, it is evident that the discount rate is 10 percent, so it is better for Hackney to invest early so that it does not need to pay any interest in the coming months. As one of the best and most expensive assets, a fleet vehicle is indeed a big investment. Hackney should take into account all the options, features and parameters before making the final decision. The scope of what the truck or car will be used for also needs to be understood. In addition, Hackney should pay attention to where there can be room for improvement and ma

Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Correlation. Answer Both Question: Correlation. Statistics Project
    Description: The sale of warm jackets during cold times of the year is higher than during warm times. The two variables (sale of warm jackets in $ and low temperatures in Degree Celsius o) are related. ...
    2 pages/≈550 words | 1 Source | APA | Mathematics & Economics | Statistics Project |
  • Probability in Managerial Decision-Making
    Description: Let’s suppose that the Goodyear Tire Company has just developed a tire to be sold. Since the tire is new and Goodyear wants to introduce it into the consumer market, company executives believe that a mileage guarantee offered with the tire will be an important factor in buying the product....
    1 page/≈275 words | 1 Source | APA | Mathematics & Economics | Statistics Project |
  • Research Methods. Evaluation of Research Methods. Statistics Project
    Description: To evaluate the relevancy and validity of a research article, you must be able to identify the research methods used in the research study and understand their advantages and disadvantages. In this short paper activity, identify the methodology of the same article you worked with last week....
    1 page/≈275 words | 1 Source | APA | Mathematics & Economics | Statistics Project |