Question
1. (2.5 points) If you rent a car, you can (1) return it with a full gas tank, (2) return it without, filling it
1. (2.5 points) If you rent a car, you can (1) return it with a full gas tank, (2) return it without, filling it and pay $2.75/gallon, or (3) accept a fixed price of $35 for gas. The local price is $3.00/gallon for gasoline, and you expect this car to get 30 miles per gallon. The car has a 15-gallon tank. What choice should you make if you expect to drive 450 miles?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
4th Edition
1439078084, 978-1439078082
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