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Because of its age, your car costs $6,500 annually in maintenance expense. You could replace it with a newer vehicle costing $10,100 that would be

image text in transcribed Because of its age, your car costs $6,500 annually in maintenance expense. You could replace it with a newer vehicle costing $10,100 that would be expected to have a life of 7 years. If your opportunity cost of capital is 8%, by how much must maintenance expense decrease on the new vehicle to justify its purchase? $ (please round your final result to 2 decimals, but keep as many decimals as possible during calculation) Because of its age, your car costs $6,500 annually in maintenance expense. You could replace it with a newer vehicle costing $10,100 that would be expected to have a life of 7 years. If your opportunity cost of capital is 8%, by how much must maintenance expense decrease on the new vehicle to justify its purchase? $ (please round your final result to 2 decimals, but keep as many decimals as possible during calculation)

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