Considering the purchase of two alternative cars

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A student is considering the purchase of two alternative cars. Car A initial costs $1,500 more than Car B, but uses 0.05 gallons per mile, versus 0.07 gallons per mile for Car B. Both cars will last for 10years, and B's market value is $800 less than A's. Fuel costs $3.00 per gallon. If all else is equal, at how many miles driven per year does Car A become preferable to car B?

Reference no: EM1386351

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