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You are trying to pick the least-expensive car for your new delivery service. You have fwo choices the Scion xA, which wall cost $18,500 to

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You are trying to pick the least-expensive car for your new delivery service. You have fwo choices the Scion xA, which wall cost $18,500 to purchase and which will have OCF of $2,100 annually throughout the vehicle's expected ife of three years as a delivery wehicle, and the Toyoto Pris, which will cost $28,000 to purchase and which will have OCF of $1,100 annually throughout that vehicies expected 4year life. Both cars will be worthless at the end of their life. You intend to replace whichever fype 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 12 percent, catculate the EAC. (Negative amounts shoutd be indicated by a minus sign. Round your answers to 2 decimal places.) Which one should you choose? Scion xA Toyote Privs

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