1. Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other. Gateway's discount rate is 10.6%. The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown below, which should it choose? (Note: dollar amounts are in thousands.) Model Year O Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Old Reliable - $201 - $4.2 - $4.2 - $4.2 - $4.2 - $4.2 - $4.2 - $4.2 Short and Sweet - $101 - $1.9 - $1.9 - $1.9 - $1.9 1) What is the NPV of each choice? NPV of the Old Reliable = NPV of Short and Sweet = 2) What is the Equivalent Annual Annuity of each choice? Equivalent Annual Annuity of the Old Reliable = Equivalent Annual Annuity of Short and Sweet =