Suppose you wish to buy a car today. You have two choices, buy a new car for $10,000 or buy a used car for $6,000. The new car has an economic life of 6 years and you expect that it can be sold at the end of 6 years for $2,000. If you buy the used car, you plan to sell it in 3 years and expect to receive $600. Also, you expect that the used car will require $400 more a year than the new car for maintenance. Assume your marginal tax rate equal to zero. If your opportunity cost of capital is 10%, would you choose the new or used car? What is the Net Present Value for the new car? A. -$2,631 B. -$8,871 C. -$6,544 D. -$2,037 E. None of the above ENTER RESPONSE HERE: Blank 1 What is the real annuity equivalent for the new car? A. -$2,631 B. -$8,871 C. -$6,544 D. -$2,037 E. None of the above ENTER RESPONSE HERE: Blank 2 What is the present value for the used car? A. -$2,631 B. -$8,871 C. -$6,544 D. -$2,037 E. None of the above ENTER RESPONSE HERE: Blank 3 What is the real annuity equivalent for the used car? A. -$2,631 B. -$8,871 C. -$6,544 D. -$2,037 E. None of the above ENTER RESPONSE HERE: Blank 4 It is cheaper to buy the used car? A. True B. False ENTER RESPONSE HERE: Blank 5