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Score: 0 of 1 pt 8 of 9 (0 complete) | HW Score: 0%, 0 of 9 pts P 8-33 (similar to) Question Help Gateway

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Score: 0 of 1 pt 8 of 9 (0 complete) | HW Score: 0%, 0 of 9 pts P 8-33 (similar to) Question Help Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other Gateway's discount rate is 10.5% The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown below, which should it choose? (Note: dollar amounts are in thousands ) Model Year o Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Old Reliable Year 7 -S202 -$4.1 - $4.1 -S4.1 -$41 -$41 - $4.1 - 541 Short and Sweet - $99 -$18 - $1.8 -$1.8 -$1.8 Based on the costs of each model, which should it choose? (Select the best choice below) O A. Gateway Tours should choose Short and Sweet because the NPV of its costs is smaller OB. Gateway Tours should choose Old Reliable because it lasts longer O C. Gateway Tours should choose Old Reliable because the equivalent annual annuity of its costs is smaller OD. Gateway Tours should choose Short and Sweet because the equivalent annual annuity of its costs is smaller

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