what should be Sam’s reimbursement rate per mile so that he can break even?

Sam Tucker is a sales engineer at Buford Chemical Engineering Company. Sam owns two vehicles, and one of them is entirely dedicated to business use. His business car is a used small pickup truck, which he purchased with $11,000 of personal savings. On the basis of his own records and with data compiled by the U.S. Department of Transportation, Sam has estimated the costs of owning and operating his business vehicle for the first three years as follows:

First YearSecond Year Depreciation$2,879$1,776$1,545Scheduled maintenance100153220Insurance635635635Registration and taxes785750Total ownership cost$3,692$2,621$2,450Nonscheduled repairs3585200Replacement tires353027Accessories151312Gasoline and taxes688650522Oil80100100Parking and tolls135125110 Total operating costs$988$1,003$971 Total of all costs$4,680$3,624$3,421Expected miles driven14,50013,00011,500

If his interest rate is 6%, what should be Sam’s reimbursement rate per mile so that he can break even?

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