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Because it is getting old, your car costs $3,500 annually in maintenance expense and $5,000 in fuel costs each year. If you sold your car
Because it is getting old, your car costs $3,500 annually in maintenance expense and $5,000 in fuel costs each year. If you sold your car it would only be worth $2,000 but you could replace it with a slightly newer vehicle costing $12,000. Both vehicles would be expected to last 5 more years. If your opportunity cost is 10%, by how much must combined maintenance expense and fuel cost decrease on the newer vehicle to justify its purchase? (provide your answer to the nearest dollar)
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