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Current Attempt in Progress An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade
Current Attempt in Progress An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $4,700 and it will cost $1,250 per year to operate at the end of year that follows. She will keep the vehicle for 6 years; at the end of this period, the upgraded vehicle will have a salvage value of $4,500. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $9,800 and that there will be $4.100 due at lease signing. She further estimates that it will cost $2,800 per year to lease and operate the vehicle. The independent contractor's MARR is 12%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. $ EUAC(keep): $ EUAC(lease): Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is +5. Which alternative would you recommend to the independent contractor? An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $4,700 and it will cost $1,250 per year to operate at the end of year that follows. She will keep the vehicle for 6 years; at the end of this period, the upgraded vehicle will have a salvage value of $4,500. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $9,800 and that there will be $4,100 due at lease signing. She further estimates that it will cost $2,800 per year to lease and operate the vehicle. The independent contractor's MARR is 12%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. $ EUAC(keep): $ FuaCleacal . Trade in her vehicle and lease a new one laces and then round your final answers to a whole number. Upgrade her current vehicle Either alternative is fine the independent contractor? eTextbook and Media
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