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Find and calculate the eac

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Point 1: You are trying to pick the least expensive car for your delivery service. You have two choices: The Scion xA which will cost $14,000 to purchase and which will have an OCF -1,200 annually throughout the vehicles expected life of 3 years as a delivery vehicle; and the Toyota Prius, which will cost $20,000 to purchase and which will have an OCF -650 throughout the vehicles expected life of 4 years. Both cars will be worthless at the end of their life. You intend to replace any car you use with the same thing when its life runs out,again and again into the forseeable future.

Question 1: If the business has a cost of capital of 12 percent, calculate the EAC.

Scion xA :

Toyota Prius

Reference no: EM132500090

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