engineering economy

1.     A company is currently paying a sales representative $0.25 per mile to drive her car for company business. The company is considering supplying the representative with a car, which would involve the following: A car costs $12,000, has a service life of 5 years, and a market value of $3,500 at the end of that time. Monthly storage costs for the car are $80, and the cost of fuel, tires, and maintenance is 15 cents per mile. The car will be depreciated by MACRS, using a recovery period of 5 years (20%, 32%, 19.20%, 11.52%, 11.52%). The firm’s marginal tax rate is 40%. What annual mileage must a salesman travel by car for the cost of the two methods of providing transportation to be equal if the interest rate is 15%?