The Riteway Ad Agency provides cars for its sales staff. Its present fleet of cars Is three years old and will be sold very shortly. To provide a replacement fleet, the company Is considering two alternatives:

Purchase alternative:

The company can purchase the cars and sell them in three years. Ten

cars would be purchased for $$17,000$ each. If this alternative is

chosen, the entire fleet will incur the following costs:

$\backslash$table$[[$Annual cost of servicing, taxes, and licensing,$$3,000$