Question: ...................................................... 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

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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 11.3%. 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? (Note: dollar amounts are in thousands.) Model Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Old Reliable -$199 -$3.9 -$3.9 -$3.9 -$3.9 - $3.9 -$3.9 -$3.9 Short and Sweet -$101 -$2.2 -$2.2 -$2.2 -$2.2

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