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You are trying to pick the least - expensive car for your new delivery service. You have two choices: the Scion x A , which
You are trying to pick the leastexpensive car for your new delivery service. You have two choices: the Scion which will cost
$ to purchase and which will have OCF of $ annually throughout the vehicle's expected life of three years as a delivery
vehicle; and the Toyota Prius, which will cost $ to purchase and which will have OCF of $ annually throughout that
vehicle's expected year life. Both cars will be worthless at the end of their life. You intend to replace whichever type of car you
choose with the same thing when its life runs out, again and again out into the foreseeable future.
If the business has a cost of capital of percent, calculate the EAC. Negative amounts should be indicated by a minus sign. Round
your answers to decimal places.
Answer is complete but not entirely correct.
Which one should you choose?
Scion
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