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Afresh graduate who just started his new job is choosing between two commuting cars of comparable sizes. The first is a traditional gasoline car and

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Afresh graduate who just started his new job is choosing between two commuting cars of comparable sizes. The first is a traditional gasoline car and the second is an all-electric car. The anticipated usage of the car is 20,000km per year. The market value for both cars follows a Declining Balance Depreciation model. Given the data in the table below and assuming that paying will be in cash, answer the following at 0% interest rate, a) If the car is to be sold after 3 years, which car model is more economic? (7 Marks) b) What gas price would justify the gasoline model, over the all-electric model, if the commuter will resell the car after 4 years? ( 9 Marks) c) How many years of usage will justify buying the all-electric model? (Hint: the answer could be a fraction value). ( 9 Marks)

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