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 10.8%. 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 Old Reliable Short and Sweet Year 0 - $200 - $102 Year 1 - $4.2 - $1.9 Year 2 - $4.2 -$1.9 Year 3 - $4.2 - $1.9 Year 4 -$4.2 -$1.9 Year 5 -$4.2 Year 6 - $4.2 Year 7 - $4.2 Based on the costs of each model, which should it choose? (Select the best choice below.) A. Gateway Tours should choose Short and Sweet because the NPV of its costs is smaller. B. Gateway Tours should choose Old Reliable because it lasts longer. C. Gateway Tours should choose Old Reliable because the equivalent annual annuity of its costs is smaller. D. Gateway Tours should choose Short and Sweet because the equivalent annual annuity of its costs is smaller. You are considering opening a new plant. The plant will cost $96.7 million up front and will take one year to build. After that it is expected to produce profits of $31.1 million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 8.8%. Should you make the investment? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. The NPV of the project will be $ million. (Round to one decimal place.) You make the investment. (Select from the drop-down menu.) The IRR is %. (Round to two decimal places.) The maximum deviation allowable in the cost of capital estimate is 1%. (Round to two decimal places.)