Alpha Geek

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Category > Economics Posted 21 Jun 2017 My Price 5.00

A college student has been looking for a new tire for his car and has located the following alternatives

A college student has been looking for a new tire for his car and has located the following alternatives: The student feels that the warranty period is a good estimate of the tire life and that a 10% interest ran is appropriate. Use an annual cash flow analysis tc determine which tire he should buy.


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Alpha Geek
(8)
Status NEW Posted 21 Jun 2017 06:06 AM My Price 5.00

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file 1498027426-Answer.docx preview (39 words )
S-----------olu-----------tio-----------n: ----------- W-----------e n-----------eed----------- to----------- fi-----------nd -----------the----------- eq-----------uiv-----------ale-----------nt -----------cos-----------t o-----------f t-----------ire----------- = -----------(As-----------set----------- Pr-----------ice----------- x -----------Dis-----------cou-----------nt -----------rat-----------e)/-----------(1------------(1+-----------Dis-----------cou-----------nt -----------Rat-----------e)^-----------(-p-----------eri-----------od)-----------) E-----------qua-----------lly----------- An-----------nua-----------l c-----------ost----------- of----------- 12----------- mo-----------nth-----------s w-----------arr-----------ant-----------y t-----------ire----------- = -----------(39-----------.95-----------*10-----------%)/-----------(1------------((1-----------+10-----------%)^-----------(-1-----------)))----------- =$-----------36.-----------32 -----------Equ-----------all-----------y A-----------nnu-----------al -----------cos-----------t o-----------f 2-----------4 m-----------ont-----------hs -----------war-----------ran-----------ty -----------tir-----------e =----------- (5-----------9.9-----------5*1-----------0%)-----------/(1------------((-----------1+1-----------0%)-----------^(------------2))-----------) =-----------$34----------- -----------
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