4. You believe you can find a way to use the perceived capital loss (market value − offered trade-in) on the current car to a full tax advantage if the new car option is chosen with a 5-year retention period. You have an effective 22% tax rate. Table Summary: Table divided into three columns compares market value of two cars based on their price. Column 1 notes the list of cost factors. Columns 2 to 3 are marked as: current car and new car. Current Car New Car Market value, $ 10,000 First cost, $ −35,000 AOC, $ per year −15,000 −12,000 Original useful life, years 10 10 Retention time, years 5 varies Offered trade-in, $ 2,000