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An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $$4,800$ and it will cost $$1,450$ per year to operate at the end of year that follows. She will keep the vehicle for $5$ years; at the end of this period, the upgraded vehicle will have a salvage value of $$4,300.$ Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade$-$in value of $$9,000$ and that there will be $$4,600$ due at lease signing. She further estimates that it will cost $$3,300$ per year to lease and operate the vehicle. The independent contractor's MARR is $11\%.$ Compute the EUAC of both the upgrade and lease alternatives using the insider perspective.

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EUAC$($keep$)$:

EUAC$($lease$)$:

Carry all interim calculations to $5$ decimal places and then round your final answers to a whole number. The tolerance is $+-5.$

Which alternative would you recommend to the independent contractor?

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