resale value is rs 20 000 at the end of the fifth year work out the relative costs o 620945

A company is considering three alternative proposals for conveyance facilities for its sales personnel who have to do considerable travelling, approximately 20,000 kilometres every year. The proposals are as follows:

1. Purchase and maintain its own fleet of cars. The average cost of a car is Rs. 1,00,000.
2. Allow the executive to use his own car and reimburse expenses at the rate of Rs. 1.60 per km and also bear insurance cost.
3. Hire cars from an agency at Rs. 20,000 per year per car. The company will have to bear the cost of petrol, taxes and tyres.

The following further details are available:

Resale value is Rs. 20,000 at the end of the fifth year. Work out the relative costs of the three proposals and rank them