Question: You live in a large urban area that has a car-share program. For a small annual fee and small hourly fee, the program provides a

You live in a large urban area that has a car-share program. For a small annual fee and small hourly fee, the program provides a rental car that can take you to town for shopping, to the airport to pick up someone, or wherever else you need to go. The savings over car ownership can be very significant. Two programs are currently available. One of the programs has a $140 annual fee and a $4 per hour usage fee. The other program has a smaller annual fee of only $50, but the hourly rate is $7.

Required
1. Which program would you choose and what type of analysis would you use to support your choice?
2. Rental car agencies such as Hertz and Avis are available for daily rentals which in some locations can be as low as $30 per day or less. When would you choose to use a rental agency instead of car-share, and why?

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