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The Wrongway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then
The Wrongway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company's 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 as follows:
Purchase Alternative. The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $ each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:
tableAnnual cost of servicing, taxes, and,$
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