Your good friend Lysa (she/her) lives in Vancouver and recently saw an advertisement for BB. She has approached you to get your opinion as she knows you are an aspiring accounting student at trusu.

Lysa does not currently own a vehicle. She is considering purchasing a new all electric vehicle as they require less maintenance and are environmentally friendly. She just relocated to a new condo building that is equipped with a charging station available for residents. However, the increased rent for her new home has her seeking additional income opportunities beyond her annual salary of $84,000.

Lysa has decided to purchase a fully electric vehicle new 2023 Mustang MachE in Rapid Red Metallic with the All-Wheel Drive (AWD) system. This will allow her to keep operating in all weather conditions and as a visible and fully electric vehicle, she expects it will stand out amongst riders.

Lysa has the choice of numerous vehicles in the Lower Mainland region in her chosen color but have various options with the most important being the battery range of the vehicle. Regular ("reg") is rated for a range of 340 km while the extended ("ext") is rated for a range of 435 km. She has contacted the following dealerships and has received the following purchase quotes from each as below:

Option A	Option B
Suburban Moters AWD Select reg	Chilliwack Ford AWD C1 ext
Base price 59,995.00	69,995.00
Options 1,600.00	950.00
Shipping 2,195.00 $	2,195.00
Taxable Amount S 63,790.00 $ 7.0% PST 4,465.30	73,140.00 5,119.80
5.0% GST 3,189.50	3,657.00
Total 71,444.80	81,916.80

Lysa estimates her average marginal tax rate is 24% and currently earns 11% per year on her other investments. You note from your tax studies that Capital Cost Allowance ("CCA") using Class 16 at 40% would apply.

Lysa believes that a salvage value of 50% of the original total cost of either vehicle will be realized at the end of the fourth year. She estimates that she can earn an average of $900 in revenues per week that will be offset by average operating costs of $2,775 per month for electricity (charging fees), maintaining the correct BCIC insurance for commercial operations and maintenance expenses including cleaning and tire replacements.

Lysa recently reviewed the Hydro company

models-in-BC and found that there were numerous Battery Electric SUV models available that are potentially eligible for of up to $9,000 EV rebates from various levels of government. Lysa would like you to review these EV rebates and explain to her how you believe they would impact her upcoming purchase.

1) Using a new EXCEL SPREADSHEET(not handwritten), on the first tab compute the net present value of for each of these two potential investments. Show and explain all relevant details of your calculations so that Lysa can see each step INCLUDING the impact of any applicable EV rebates from your review of the Hydro company. (14 marks)

2) On the second tab, discuss any additional advice you would give Lysa including quantitative and/or qualitative issues from your analysis for each of the (2) potential investments. (6 marks)