Business, 30.11.2019 02:31 reyesdaisy858

Aused car can be kept for two more years and then sold for an estimated $3000, or it could be sold now for $7500. the average annual maintenance cost over the past 7 years has been $500 per year. however, if the car is kept for two more years this cost is expected to be $1800 the first year and $2000 the second year. as an alternative a new car can be purchased for $22,000 and be used for 4 years, after which it can be sold for $8000. the new car will be under warranty for the first 4 years, and not extra maintenance cost will be incurred during those years. if the marr is 15% per year what is the better option and why?

a. keep car, do not buy new one because euac defender is $5111 and euac of challenger is $6104

b. buy new car because euac of challenger is $4904 and euac and defender is $5111

c. buy new car because euac of challenger is -$9308 and euac of defender is $498

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