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1) (25 pts.) A taxi company is considering diesel or gasoline cars. The cars average 50,000 km/year. Diesel Gasoline Vehicle cost $24,000 $19,000 End-of-life (years)

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1) (25 pts.) A taxi company is considering diesel or gasoline cars. The cars average 50,000 km/year. Diesel Gasoline Vehicle cost $24,000 $19,000 End-of-life (years) 6 5 Fuel cost/liter 68 720 Mileage (km/liter) 35 28 Annual repairs $1,000 $1,200 Annual Insurance $1,500 I $1,500 Resale value at end-of-life $4,000 $6,000 Given the above, and if i=7%, use annual cash flow analysis to find the most economical choice

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