3. You have a 1999 Nissan that is expected to run for another three years but you are considering buying a new Hyundai before the Nissan wears out. You will donate the Nissan to Goodwill when you buy the new car. The annual maintenance cost is $1 800 per year for the Nissan and $250 for the Hyundai. The price of your favorite Hyundai model is $19 000 and is expected to run for 15 years. Your opportunity cost of capital is 5 percent. Ignore taxes.a) Calculate the EAC for both Nissan and Hyundai.b) When should you buy the new Hyundai?Please round all intermediateĀ calculations to 4-decimal places and round final answers to 2-decimal places when applicable.
