Question: John needs a commute car. He has three options shown in the following table, using annual worth analysis, what is the Annual Worth (AW) Cost

John needs a commute car. He has three options shown in the following table, using annual worth analysis, what is the Annual Worth (AW) Cost of Each Option. MARR = 8% compounded monthly.

2003 Subaru

2006 Accord

Rent

Purchasing Price

$ 6,000.00

$ 8,500.00

$ -

Annual Operation Cost

$ 500.00

$ 200.00

$2,500 Rental

Resale price

$ 2,500.00

$ 4,000.00

Years to keep

3

4

Forever

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