At what annual mileage is it cheaper to provide your field representatives with cars rather than to pay them $0.50 per mile for the use of their own cars? The cost of furnishing a car are as follows: (For this problem go to www.mhhe.com/dieter and look at the discrete compound interest tables)

Purchase price- $23,750

Life- 4 years

Salvage- $3750

Storage- $425 per year

Maintenance- $0.225 per mile

a) Assume i=10%

b) Assume i= 16%