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You have a 2000 Nissan that is expected to run for another three years, but you...

You have a 2000 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 $1,450 per year for the Nissan and $250 for the Hyundai. The price of your favorite Hyundai model is $17,300, and it is expected to run for 15 years. Your opportunity cost of capital is 3 percent. Ignore taxes.

Calculate EAC of Hyundai if it is purchased today. (Do not round intermediate calculations. Round final answer to 2 decimal places, e.g. 5,275.25.)

EAC of purchasing this Hyundai today $ .



When should you buy the new Hyundai?

You should buy the Hyundai

todayafter three years

.
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