Warren Tea needs new tires for his Escalade. He
researches the Internet and finds the following alternatives:

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Question: Warren Tea needs new tires for his Escalade. He researches the Internet and finds the following a…
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Warranty (mos)     Cost

TireA                   
12              
39.95

TireB                    24               59.95

TireC                  
36              
69.95

TireD                    48               90.00

Automotive engineer Warren figures that the warranty
period is a good estimate of the life of the tire. Using a MARR of
10% and annual cash flow, what is the AC of the cheapest option, to
the nearest cent?

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