Q3. A rental company bought a new Car for $40,000 to rent to its customers. The company plans to recover the costs with a stream of annual revenues in five years, the company uses a cost of capital of 0.10, 2. what will be the annual revenue the company would like to receive to conver the initial cost (.e to break-even)? b. If the company receives $10000 every year for next five years as annual revenue (consider the amounts at end of each year), is it making any profit in present value tem (ie is NPV>0)? 04. A rental car company plans to buy a car to rent it out to its customers and has two choices: 1. A SUV with purchase price of $45,000, annual maintenance cost of ST500, lifetime of years with a scrap value of $2000 A minivan with purchase price of $40,000 annual maintenance cost of $1000, lifetime of 6 years with a scrap value of 51000 If the company requires a rate of return of ji=89, which car it would prefer based on the capitalised costs of the two options