A college student has been looking for a new tire for his car and has located the

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A college student has been looking for a new tire for his car and has located the following alternatives: The student feels that the warranty period is a good estimate of the tire life and that a 10% interest ran is appropriate. Use an annual cash flow analysis tc determine which tire he should buy.

Tire Warranty Price per Tire S39.95 59.95 (montbs) 12 24 36 69.95 48 90.00

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