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You may either use an excel spreadsheet for your answers, or you may perform them with a calculator in the space below. You own a

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You may either use an excel spreadsheet for your answers, or you may perform them with a calculator in the space below. You own a pizza shop. Your employees use a gas-guzzling SUV to deliver pizzas to your customers in Manhattan. They drive 20,000 miles per year. The SUV is 6 years old and gets only 15 miles per gallon of gasoline. You can sell it now for $8,000 in cash. Once it is 10 years old however, you will be able to sell it for only $3,000 in cash. The annual maintenance expenses will be $2,000 per year for the next 4 years. Gasoline costs $3.00 per gallon. If you sell this gas guzzling SUV now, you can buy a tiny Smart Car for $20,000 that gets 40 miles per gallon of gasoline. It will be under warranty for four years, and will have zero maintenance costs. You can sell it in 4 years for $10,000. Use a 4-year study period to determine whether you keep your SUV or buy the Smart Car. The MARR is 10%. Calculate the EUAC of the two alternatives, and recommend the cheaper of the two

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