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A college student has been looking for new tires. The student feels that the warranty period is a good estimate of the tire life and
A college student has been looking for new tires. The student feels that the warranty period is a good estimate of the tire life and that a 10% interest rate is appropriate. Using an annual cash flow analysis, which tire should be purchased?
Tire Warranty (months) | Price per Tire |
12 | $39.95 |
24 | $59.95 |
36 | $69.95 |
48 | $90 |
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