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Your old car costs you $300 per month in gas and repars. If you replace it, you could sol the old car immediately for $2.200.

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Your old car costs you $300 per month in gas and repars. If you replace it, you could sol the old car immediately for $2.200. To buy a new car that would last seven years, you need to pay out $10,000 immed ately. Gas and repairs would cost you only $180 per month on the new car. Interest is 15% compounded montrily. Should you buy a new caf (Alternative 1) or keep your old car (Atemative 2)? Compute the net present value of each allemative and determine which ahtemative should be accopted or rejected according to the net present value criterion. The net present value foc Atemative 1 is $ (Round the final answer to the nearest doliar as needed. Round all intermedate values to six decimal places as needed.) The net present value for Attemative 2 is ? (Round the final answer to the nearest dollar as needed. Round all imermediate values to six decimal placests needed.) The prefered altemative is Aternative 1. Alernative 2

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