For the following two AW relations, the breakeven point QBE in miles per year is closest to:

AW1 =?23,000(A/P,10%,10) + 4000(A/F,10%,10) ? 5000 ? 4X
AW2 = ?8,000(A/P,10%,4) ? 2000 ? 6X
(choose one)

(a) 1984
(b) 1224
(c) 1090
(d) 655


Set equations equal to each other and solve for QBE
2QBE = 23,000(0.16275) - 4000(0.06275) - 8000(0.31547) + 3000
QBE = 1984

Answer is (a) 1984

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