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A woman had to have the muffler on her car replaced. She has two choices: 1. $30.00 cost with a two year guarantee 2. $50.00
A woman had to have the muffler on her car replaced. She has two choices: 1. $30.00 cost with a two year guarantee 2. $50.00 cost with a lifetime guarantee Assuming she plans to keep the car for three more years, the life of the $30.00 muffler is two years and i = 30%, Which alternative should be selected? Provide cash flow diagrams and show your work
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