Hello everyone,

Can someone help me please and solve this problem, I traid solved it but I don't know if my solution is correct.

I have to show all these steps, cash flow, diagram & solving the problem.

Appreciate the help

Two types of new cars with the following estimates are under consideration by dealership process with interest rate 7% for both cars per year. Determining which one should be selected based an annual worth analysis. Draw cashflow diagram and solve the problem. The rate of return equation based on the AW of incremental cash flows is:AWrat =50,000(A,P,7%,4)13,000+9,000( A.F. 7%,4) =50,000(0.29523)13,000+9,0000.22523)=$25,734 AWa=65,000(AP7%,8)7,000+15,000(AN,7%,8)=65,000(0,16747)7,000+15,000(0,09747)=$16,424 Two types of new cars with the following estimates are under consideration by dealership process with interest rate 7% for both cars per year. Determining which one should be selected based an annual worth analysis. Draw cashflow diagram and solve the problem. The rate of return equation based on the AW of incremental cash flows is:AWrat =50,000(A,P,7%,4)13,000+9,000( A.F. 7%,4) =50,000(0.29523)13,000+9,0000.22523)=$25,734 AWa=65,000(AP7%,8)7,000+15,000(AN,7%,8)=65,000(0,16747)7,000+15,000(0,09747)=$16,424