Henri has decided to purchase a $$25,000$ car. He can either liquidate some of his investments and pay cash, or accept the dealer's

proposal that Henri pay $$5000$ down and $$8000$ at the end of each of the next three years.

a$.$ Which choice should Henri make if he can earn $7\%$ compounded semiannually on his investments? In current dollars, what is the

economic advantage of the preferred alternative? $($Do not round your intermediate calculations and round your final answer to the

nearest cent.$)$

Choice

The economic advantage $

b$.$ Which choice should Henri make if he can earn $11\%$ compounded semiannually on his investments? In current dollars, what is the

economic advantage of the preferred alternative? $($Do not round your intermediate calculations and round your final answer to the

nearest cent.$)$

Choice

The economic advantage

$($Hint$.$ When choosing among alternative streams of cash inflows, we should select the one with the greatest economic value. When

choosing among alternative streams of cash outflows, we should select the one with the least economic value.$)$