A firm is interested in developing a $$Decision Table$$ to help sales managers manage their employees$$ work$-$related transportation expenses. Such a decision table will be used by managers to determine whether an employee should be provided a new leased car, a new purchased car or pay the employee for use of their own cars, based on miles driven for work.

The three mutually exclusive alternatives are:

Employee Reimbursement:

Employee would submit monthly expense report indicated the mileage used for business. The firm will reimburse at $$1\mathrm{.}15$ per mile. Employee will not be reimbursed for any other expenses including gasoline and car wear and tear.

Purchase Alternative:

The car considered for acquisition is a well$-$equipped Lincoln Nautilus, that costs $$58,000$ to purchase inclusive of sales tax, title fees, etc. The expected resale value of the car is $$40,000$ at the end of $3$ years. The resale value will go down by $$0\mathrm{.}28$ for every mile driven more than $36,000$ miles. If the miles driven is less than $36,000$ miles, the resale value will increase by $$0\mathrm{.}13$ for every mile driven below $36,000$ miles.

Lease Alternative:

Initial down payment including $$bank fee$$ is $$5,400.$ Lease term $=36$ months. Monthly lease payment $($payable beginning of month$)$ is $$550.$ Miles allowed is $36,000$ over the $36-$month lease period. Payment at lease termination is $$3,000$ to prepare the vehicle for sale to a different customer; that payment is due at the end of $36$th month. Charge for excess mileage is $63$ cents per mile inclusive of taxes. The excess mileage charges are due at the end of the lease term. The lease contract does not allow for purchase of the vehicle at the end of lease termination.

Other Assumptions:

$1)$ Interest Rate is $10\mathrm{.}8$ percent per year Compounded Monthly.

$2)$ Lincoln Nautilus has a fuel efficiency rating of $26$ mpg $($combined city and highway$)$

$3)$ Average price of the gas is assumed to be $$4\mathrm{.}20/$gal

$4)$ Car$$s mechanical maintenance charges $($oil change, tire rotation, multi point safety inspection, etc.$)$ during the first three years of new car ownership are not included in the analysis as the dealership covers them free of cost$.$

$5)$ Car$$s other maintenance charges are listed as follows:

a$)$ Insurance $$ the firm is a large firm $($fortune $100).$ It does not buy insurance. It is self$-$insured.

b$)$ Car wash $$ To keep the car clean, it needs to be washed once a month, and the employee will submit the bill along with the bill for gasoline charges, once a month $-$ end of month.

Cost of car wash $$12$ per wash.

You need to compute Present Value Cost of using the vehicle over a $3-$year period for the above alternatives.

$1)$ Present the results in a table Like the one shown below. Note that NPV Cost is shown as a positive number.

it is ok to do that since we know that this problem is a cost only problem without any revenues.

Show all results in $$000$ to single decimal place accuracy.

Let the table values start at $6,000$ miles and end at $90,000$ miles going in steps of $6,000$ miles.

$2)$ Show the results as graphs with x$-$axis showing the miles driven and the Y$-$axis showing the NPV Cost.