Suppose you are considering purchasing a new car. You and your spouse have narrowed it down to two choices:

a. 2017 Acura ILX Initial Price: $27,300 Annual O&M: $4,456 Expected trade-in value after 5 years: $9,100

b. 2017 Audi A4 Initial Price: $38,795 Annual O&M: $3,050 Expected trade-in value after 5 years: $18,544

If you intend to keep your new vehicle for 5 years, then trade it in, determine the net present value (NPV) of each alternative, assuming a discount rate of 4.0%. Which alternative is the better buy, using the NPV criterion?