An independent contractor for a transportation company needs to determine whether she should perade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle she will need to invest in immediate upgrades that cost $5,000 and it will cost $1,500 per year to operate at the end of year that follows. She will keep the vehicle for 4 years at the end of this period, the upgraded vehicle will have a salvage value of $4,000. Alternatively, she could trade in her vehicle to lease a new vehicle, She estimates that her current vehicle has a trade-in value of $10.000 and that there will be $4.500 due at lease signing. She further estimates that it will cost $3,000 per year to lease and operate the vehicle. The independent contractor's MARRIS 12%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator $ EUAC(keep) $ EUAC(lease): Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is +5. Which alternative would you recommend to the independent contractor? Current Attempt in Progress An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle she will need to invest in immediate upgrades that cost $5,000 and it will cost $1,500 per year to operate at the end of year that follows She will keep the vehicle for 4 years at the end of this period, the upgraded vehicle will have a salvage value of $4,000. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $10,000 and that there will be $4.500 due at lease signing, She further estimates that it will cost $3.000 per year to lease and operate the vehicle. The Independent contractor's MARR is 12%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective Click here to access the TVM Factor Table Calculator. $ EUAC(keep): $ EUAC(lease): a custar $ EUAC(keep): $ EUAClease) Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is 15. Which alternative would you recommend to the independent contractor? Trade in her vehicle and lease a new one Upgrade her current vehicle Elther alternative is fine Hint Attempts: 0 of 1 used Submit Awe Save for Later dl
