Company XYZ is interested in replacing its fleet of 15 vehicles with new vehicles. They would be acquiring 15 identical units, and are particularly interested in SUVs or SEDANs, with capacity for at least 5 people comfortable and reasonable area for at least two suitcases regular. The preferred option is traditional gasoline units, but they do not rule out the possibility of purchasing hybrid or electric, if it is economically reasonable. It is expected that the Units have a usage of about 18,000 miles/year, and will be used for 6 years.

The company has hired you to carry out the analysis and recommend the best alternative. the first thing you will do is select three alternatives similar in capacity and quality (preferably models within the same brand), among which there must be at least except a traditional model, a hybrid and an electric one. must submit a description (narrative) of the selection process of the three finalist units to be evaluated, along with a tabulated summary for each unit that contains an estimate of initial cost, maintenance costs (oil change, filters, tires, etc.), gasoline efficiency (or electrical consumption in the case of electric units), and any other cost or data that you consider relevant to be able to compare the units. The electric units it is presumed that they will be charged on the company lot directly from the electrical network. Consider that the company operates under an industrial contract with LUMA under which it pays $0.18 per additional kWh. Any consumption resulting from the acquisition of electrical units will be will be considered additional since the units that will be replaced are all gasoline.

Part II: Select the best alternative after the corresponding After-Tax-Analysis. Use the following assumptions: 1. Units will be depreciated using the accelerated depreciation method (MACRS) as set forth stipulated in the guides for said method. 2. The company pays taxes at a rate of 34%. 3. The market value of the units at the end of 6 years will be 20% of their initial value 4. To acquire the new units, the current ones will be sold. These current units are completely depreciated, so their book-value is $0. Assume that the value of market is $6,500 each 5. The new units will be acquired through the company's line of credit, from which They can borrow at an annual effective interest rate of 5.5%. The loan will be paid in annual payments over 4 years.