Miles/gallorn Purchase cost Miles driven/da Resale value Jetta (Diesel 40 $23,000 50 $4,000 $4.50 Toyota Prius 45 $25,000 50 S4.25 S5000 Fuel costs S ected Battery replacement cost (after 8 12 Years of car ownershi Discount rate 5% Which car is the better deal for the long run. For each vehicle CRF(6%, 12 yrs) = 0.1193/yr Calculate the present value (PV) of each vehicle for resale? (PV-Future Value/ (1+discountr Which vehicle would you purchase? How much money you will save? wwPresent value is compound interest in reverse: finding the amount you would need to invest today in order to have a specified balance in the future. Among other places, it's used in the theory of stock valuation