2 A Taxi Cab Company has been using tow different automobile models, H and K, for its fleet. It has kept good records on fuel mileage, maintenance, repairs, and so on, but has never performed an economy study on the different models. The Company now needs to buy 10 new cabs and has employed you to make an engineering economy study. The drivers prefer Model H, but the manager feels Model K is more economical. You find that the primary differences are in fuel mileage, maintenance, and lost time due to repairs. Such costs as license fees, registration, drivers' wages, and insurance are the same for either model. Model H has a first cost of $9,000. Average operation and maintenance costs have been $2,200 the first year, $2,500 the second, and $2,800 the third. This model is usually retired at a salvage value of $2,500 after 3 years' service because it requires a substantial overhaul after that time. Model K has a first cost of $11,000 and a salvage value of $1,500 after 4 years' of service. Annual operating and maintenance cost have been averaging $1,700 the first year increasing by $300 each year during the second through fourth years. Find the Present Worth disbursement for each model using an i before income taxes of 20%. Which model is preferable