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Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain, but lasts much longer than the other. Gateway '

Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain, but lasts much longer than the other. Gateway's discount rate is 10.6%. The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown here: Model Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Old Reliable -201-3.8-3.8-3.8-3.8-3.8-3.8-3.8
Short and Sweet -100-2.1-2.1-2.1-2.1

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