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Because of its age, your car costs $4,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,000. Both vehicles would

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Because of its age, your car costs $4,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,000. Both vehicles would be expected to last four more years. If your opportunity cost is 8 percent, by how much must maintenance expense decrease on the newer vehicle to justify its purchase? O $1,250 $1,585 $2,000 O $2,415 Higher depreciation rates: allow more total depreciation. decrease the CCA depreciation tax shield. Have no effect on the CCA tax shield. O allow assets to be depreciated more rapidly

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