1. Using the annualized cost method, calculate the total annual costs for three different automobiles based on the following information and assumptions (15 points): Car A Car B Car C Initial Cost $19,600 $21,000 $24,000 Sales Tax 5% 5% 5% Trade-In $7,400 $8,000 $9,500 Annual Insurance $430 $470 $650 Miles/gallon 18 24 15 Maintenance/ Yr $250 $200 $150 Tire Replacement $400 $500 $600 Owner trades every four years, interest on money is 6%, gasoline is $3.00 per gallon, the user drives 16,000 miles per year and the tires are replaced every 24 months. For simplicity, assume all money spent during a given year is actually spent at the end of the year. (This eliminates fractions of a year.) 2. Using the same information (above), calculate the total costs using the present worth method. (15 points) 1. Using the annualized cost method, calculate the total annual costs for three different automobiles based on the following information and assumptions (15 points): Car A Car B Car C Initial Cost $19,600 $21,000 $24,000 Sales Tax 5% 5% 5% Trade-In $7,400 $8,000 $9,500 Annual Insurance $430 $470 $650 Miles/gallon 18 24 15 Maintenance/ Yr $250 $200 $150 Tire Replacement $400 $500 $600 Owner trades every four years, interest on money is 6%, gasoline is $3.00 per gallon, the user drives 16,000 miles per year and the tires are replaced every 24 months. For simplicity, assume all money spent during a given year is actually spent at the end of the year. (This eliminates fractions of a year.) 2. Using the same information (above), calculate the total costs using the present worth method. (15 points)