Mack is looking to buy a new taxi and has a choice between a Toyota Camry Hybrid for $$45,000$ or a Tesla Model $3$ for $$65,000.$ Mack needs your advice on which car would be the best option. He has provided some information in the table below. Both cars have a useful life of six $(6)$ years but the Toyota has a $30\%$ residual and the Tesla has a $40\%$ residual. The discount rate is $8\%$ and inflation is $4\%.$ Calculate the following:

$1.$ The Payback Period

$2.$ The Accounting Rate of Return

$3.$ The Net Present Value

TOYOTA TESLA

Revenue $-$ Taxi Fares $$200,000\mathrm{.}00$ $$200,000\mathrm{.}00$

Expenses

Fuel$/$Electricity $$5,000\mathrm{.}00$ $$1,500\mathrm{.}00$

Maintenance $$1,500\mathrm{.}00$ $$300\mathrm{.}00$

Insurance $$3,000\mathrm{.}00$ $$4,000\mathrm{.}00$

Registration $$2,000\mathrm{.}00$ $$1,000\mathrm{.}00$

Interest $$3,600\mathrm{.}00$ $$5,200\mathrm{.}00$

Wages $$162,000\mathrm{.}00$ $$162,000\mathrm{.}00$

Depreciation $$5,250\mathrm{.}00$ $$6,500\mathrm{.}00$

Advertising $$4,000\mathrm{.}00$ $$4,000\mathrm{.}00$

Other Costs $$6,000\mathrm{.}00$ $$6,000\mathrm{.}00$

Total Expenses $$192,350\mathrm{.}00$ $$190,500\mathrm{.}00$

Profit $$7,650\mathrm{.}00$ $$9,500\mathrm{.}00$