Question: Gatewny Toum is choosing between twe bus models, one of which lasts longer than the other. Gateway's discount rate is 7%. It plans to continue
Gatewny Toum is choosing between twe bus models, one of which lasts longer than the other. Gateway's discount rate is 7%. It plans to continue with one of the two modely for the fo future. Based on the cosis of each shown below, which should it choose? For each of the two bus models, give the relevant cost that you would use for comparison purposes. Note: to make it easier for you to solve this problem, I have already caloulated the EMA for one of the buses, as you can soe. You do not need to recalculate that one I The relevant cost for Oid Reliable (to one decimal place) is: (Be careful to use the correct sign, Le. positive or negative.) The relevant cast for Short and Sweet (to one decimal place) is: (Be careful to use the correct sign, ie positive or negative.)
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