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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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