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Which Car is the better purchase. Assume the each car will remain in service for 5 years. Car A Car B Gas $2.00 2.00 Distance

Which Car is the better purchase. Assume the each car will remain in service for 5 years.

Car A Car B

Gas $2.00 2.00

Distance per year 10000 10000

Discount Rate 4% 4%

Purchase Price $18,000 $20,000

Mileage Per Gallon 25 30

Maintenance per year $200 $150

Residual value $5,000 $7000

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