Cai Nguyen wants to buy a used hybrid. He found one that his neighbor will sell to him for the wholesale price. The car has a custom sound system, leather seats, a moon roof, and 45,760 miles. The car dealership in town has one that is being sold at retail. That car has leather seats, fancy wheels, and 65,430 miles. Which car will cost Cai less

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?