Chapter 9 Mutually Exclusive Alternatives
Three purchase plans are available for a new car. Plan A: $5,000 cash immediately Plan B: $1,500 down and 36 monthly payments of $116.25 Plan C: $1,000 down and 48 monthly payments of $120.50 If a customer expects to keep the car five years and her cost of money is 18% compounded monthly, which payment plan should she choose? ................
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