Using an annual cash flow analysis

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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 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 $90.00

Reference no: EM13838689

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