You are buying a car for workplace. Car gross estimates are in the range of $ 70,000 to $ 80,000 as below.
i. Mitsubishi Attrange GS
ii. Toyota Vios 1.5 J (A)
iii. Honda City 1.5 S
iv. Nissan Almera 1.5 (E) AT
v. Volkswagen Vento 1.6 Trendline
The vehicle deposit to be paid is 10% of the vehicle's current value. The annual MARR was set at 6%. You are required to provide 5 alternative calculations with the vehicle brand to be selected for reference before making a purchase. Maintenance costs, oil consumption (distance from workplace to home) and estimated depreciation in 5 years of use should be included.
(a) Sketch the cash flow diagram for all alternatives.
(b) Use the NPW analysis criteria and determine
(c) Which alternative is better? State the reason.