A company is considering supplyingemployees with company cars.Employee travel is expected to be atotal of 30,000 miles per year for allemployees. Supplying employees withcompany cars would involve thefollowing cost components:

Car purchase: $22,000with an estimated 3-year life Salvage value: $5000 Insurance cost: $1000/year Operating and maintenance expenses:$0.22 per mile The company uses a MARR of 10%.The total cost per mile of providing company cars to employees is:$ The company pays employees $0.40per mile to use their own car. Compare this with the number you calculated in the previous question. The company should provide cars to its employees?