You are planning to buy a car and debating whether to buy an electric or a conventional one. The electric car costs $60K, you get to charge it for free at work and the company pays for all maintenance costs for the first 10 years. The cost of the conventional car is $30K. It has an average maintenance cost of $2K per year and has a gas mileage of 25 miles/gallon. It has a useful life of 10 years. You plan to drive about 10, 000 miles per year and none of the cars has any salvage value after 10 years. Which car should you buy assuming the average gas price over 10 years is

(a) $3 per gallon,

(b) $5 per gallon,

(c) $6 per gallon.

Assume that the nominal interest rate is 5%.