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You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Kia Rio, which will cost $20,500 to

image text in transcribed You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Kia Rio, which will cost $20,500 to purchase and which will have OCF of $2,500 annually throughout the vehicle's expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $29,000 to purchase and which will have OCF of $1,300 annually throughou hat vehicle's expected 4-year life. Both cars will be worthless at the end of their life. If you intend to replace whichever type of car /ou choose with the same thing when its life runs out, again and again out into the foreseeable future. f the business has a cost of capital of 11 percent, calculate the EAC. Note: Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations. Round your answer: o 2 decimal places

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