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Q 38 calvic co of bpp kit, using EAC we have to calculate whether it should replace its fleet after 1 , 2 ,or 3 years , the requirement relates to fleet , 10 cars in the fleet . so the trade in value . servicing etc are given per car , we have to find the total costs and trade in value for whole fleet right ? multiplying each cost or trade in value by 10 , in solution it is calculated per car , this has to be mistake or am I missing something ?
It doesn’t matter whether you do it per car or for the whole fleet (the EAC for the whole fleet will indeed be 10 times the EAC per car).
The question does not ask for the total cost, it asks which is the best replacement period using the EAC method. So you will get the same result whether you do it for one car or for the whole fleet.
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