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use the insider perspective to solve, not excel An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she
use the insider perspective to solve, not excel
An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle into lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $4,500 and it will cost $1.250 per year to operate at the end of year that follows. She will keep the vehicle for 4 years, at the end of this period, the upgraded vehicle will have a salvage value of $4,300. Alternatively, she could trade in her vehicle to lease a new vehide. She estimates that her current vehicle has a trade-In value of $9,600 and that there will be $4,300 due at lease signing. She further estimates that it will cost $3,100 per year to lease and operate the vehicle. The independent contractor's MARR is 12%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the IVM Factor Table Calculator $ 1832 EUAC(keep) EUAC(lease): Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is +5. Which alternative would you recommend to the independent contractor Step by Step Solution
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