Problem
A Car purchased 2 years ago for $40,000 is harder to maintain than expected. It can be sold now for $12,000 or kept for a maximum of 2 more years, in which case its operating cost will be $20,000 each year, with a salvage value of $10,000 after 1 year or $9000 after two years. A rented car challenger will have an annual worth of $-24,000 per year. At an interest rate of 10% per year, should the defender be replaced now, one year from now, or two years from now?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.