Question: Calculate EAA Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other.

Calculate EAA Calculate EAA Gateway Tours is choosing between two bus models. One is

Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other. Gateway's discount rate is 11.1%. The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown below, which should it choose? Compute EAA for each model. (Note: dollar amounts are in thousands.) You must show your work including inputs to financial calculator. Model Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Old Reliable - $200 -$3.9 -$3.9 -$3.9 -$3.9 - $3.9 - $3.9 -$3.9 Short and Sweet -$102 -$1.8 -$1.8 -$1.8 -$1.8

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