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You have a 2 0 0 0 Nissan that is expected to run for another three years, but you are considering buying a new Hyundai
You have a Nissan that is expected to run for another three years, but you are considering buying a new Hyundai before the Nissan wears out. You will donate the Nissan to Goodwill when you buy the new car. The annual maintenance cost is $ for the Hyundai and the annual maintenance cost of the old Nissan increases as time goes by It is $ in the first year, $ in the second year, and $ in the third year. The price of your favorite Hyundai model is $ and it is expected to run for years. The net present value of new Hyundai is $ Your opportunity cost of capital is percent. Ignore taxes. When should you replace the Nissan with the new Hyundai? Do not round intermediate calculations. Round final answer to decimal places, eg
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