A trucking company has been looking for a new tire for its vehicle and has located the
Question:
A trucking company has been looking for a new tire for its vehicle and has located the following alternatives.
Brand Tire Warranty Price Per Tire A 12 Months ! 1200 B 24 Months ! 1800 C 36 Months ! 2100 D 48 Months ! 2700 If the company feels that the warranty period is a good estimate of the tire life and that a 12%
interest rate is appropriate, which tire should it buy?
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