Assume that you are trying to decide whether you should keep your presently owned car or purchase a new hybrid car. A new car will cost $30,000 and have annual operation and
maintenance costs of $1200 per year with a $10000 salvage value in 5 years (this is the estimated
economic service life). Your owned car has a resale value now of $6000; one year from now it
will be $4000, two years from now $3000, and 3 years from now $2200. Its operating cost is
expected to be $1900 this year, with costs increasing by $150 per year. You cannot use your
existent car longer than 3 more years. Assuming used cars like the one presently owned will
always be available, should you sell the presently owned car now, 1 year from now, 2 years from
now, or 3 years from now? Make the annual worth calculations at i=10% per year and show your
work.