Option 1 - A company is currently paying its employees $0.42 per kilometer to drive their own cars on company business.

Option 2 - The company is considering supplying employees with cars, which would involve purchasing at $26172, with an estimated three year life, a net salvage value of $9000, taxes and insurance at a cost of $977 per year, and operating and maintenance expenses of $0.22 per kilometer. If the interest rate is 7.41% and the company anticipates an employee's annual travel to be 22,000 kilometers, answer the following questions:

a) The equivalent cost per km for Option 2 is $_____

b) The equivalent cost per km for Option 1 is $_____

c) Which option is cheaper for the company?