Emma is about to go to law school, and she will need a car to use during her three years in school. Her two options are:

Option A: Buying a used car for $12,800. There is a 40% chance that soon after buying it, she will discover undisclosed mechanical problems. There would cost $3,500 to repair.

Option B: Buying a new car for $17,595

For either car Emma purchases, there is an 8% that she would get into a car accident in the next 5 years based on her driving record. An accident would cost 20% of the value of her car but she has an insurance deductible of $3,000. This means that if the cost of the accident was greater than $3,000, she would only pay the amount of the deductible. Emma is indifferent between the two cars and will make the decision based only on cost and the information provided above. Other than the potential mechanical problems discussed above, the maintenance of the cars is assumed to be the same.

What is the expected value of Option A? What is the expected value of Option B?