Warranty (mos)     CostTi

Warranty (mos)     CostTi

Warranty (mos)     CostTireA                    12               39.95TireB                    24               59.95TireC                   36               69.95TireD                    48               90.00Automotive 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?4. Frique and Fraque have an Impala and Malibu respectively. What is the annualized cost of the more expensive car, to the nearest dollar, at a MARR of 5%?Here are the financial details:Impala               MalibuPrice                                          $25,500              $19,200Annual maintenance                     1,500                  1,000Gas and oil (increasing 15%/yr)    1,200                  2,500Salvage (8 yr)                              10,000                  8,000

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