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A new engineering graduate is considering two models of SUVs for commuting between Flint and Auburn Hills to join in his new job. A GMC
A new engineering graduate is considering two models of SUVs for commuting between Flint and Auburn Hills to join in his new job. A GMC Acadia will cost $36,000 to purchase, annual operating cost of $4000 and a salvage value of $15,000 after 3 years. A Ford Explorer will cost $32,000, an operating cost of $3100 and a $15,000 resale value after 4 years. The interest rate is 15%. (a) What are the AW values for each vehicle? (b) Which SUV should your purchase based on AW analysis.
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