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Gateway Tours is choosing between two bus models. One is more expensive to purchase and...

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Finance

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Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain, but lasts much longer than the other. Gateway's discount rate is 11%. It plans to continue with one of the two models for the foreseeable futuro. Based on the equivalent annual costs of each, shown below, which should it choose? [Note: I have tried to make it easier for you to solve this problem. You do not need to do extra, unnecessary calculations merely to show me your work.] Model Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Old R R $0 -S19 $19 -S19 -S19 -$19 $19 S&S SO -S23 $23 -S23 -S23 Which bus should Gateway Tours choose? because s is better than Give me the name of the bus that should be chosen, and the final numbers that justify your answer. Do not explain any concepts - I'm looking for an answer along the lines of "Choose S [I'm sorry if the columns don't line up perfectly. Old R. is a 6 year project, and S&S is a 4 year project.] B 1 U ! . - DE x x' Insert Formula

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