Your firm has decided to test the use of EVs as upscale taxis. You are choosing between an Audi and a Polestar.

The Audi has an initial cost of $

$6$

$5$

$,$

$0$

$0$

$0$

$$and an expected life of five years. It will be depreciated straight

$-$

line over its expected life. The income expected from the Audi is $

$4$

$8$

$,$

$0$

$0$

$0$

$$per year and maintenance and electricity are expected to run $

$2$

$2$

$,$

$0$

$0$

$0$

$.$

$$The Audi is expected to be worth $

$1$

$0$

$,$

$0$

$0$

$0$

$$at the end of its very busy life.

The Polestar has an initial cost of $

$7$

$5$

$,$

$0$

$0$

$0$

$$and an expected life of

$4$

$$years$.$ It will be depreciated straight

$-$

line over its expected life. The Polestar is expected to generate revenue of $

$5$

$2$

$,$

$0$

$0$

$0$

$$per year and have associated expenses of $

$2$

$6$

$,$

$0$

$0$

$0$

$.$

$$It is expected to be worth $

$8$

$,$

$0$

$0$

$0$

$$at the end of its

$4$

$-$

year life.

Your marginal tax rate is

$3$

$5$

$\%$

$$and your required rate of return for this test run is

$1$

$0$

$\%$

$.$

$$What is the EAA of the Audi?