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# Mark must buy four new tires for his car. He is considering buying tires that are $25 a piece more ... wrote... Posts: 997 Rep: 0 0 4 years ago Mark must buy four new tires for his car. He is considering buying tires that are$25 a piece more than his regular brand, because the higher priced tires are supposed to increase his miles per gallon by 20%. If the tires are good for 48,000 miles and Mark drives an average of 1,000 miles per month, gas costs $2.50 per gallon over the next 4 years, and Mark's car gets 30 miles to the gallon now (on the old tires), should Mark purchase the more expensive tires? A) Yes, because Mark will save about$660 dollars in gas over the four years but the new tires will only be $100 more. B) Yes, because Mark will save about$560 dollars in gas over the four years but the new tires will only be $100 more. C) No, because Mark will only save about$60 dollars in gas over the four years but the new tires will only be $100 more. D) No, because Mark will only save about$90 dollars in gas over the four years but the new tires will only be \$100 more.
Textbook

## Principles of Managerial Finance

Edition: 14th
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UlainUlain
wrote...
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4 years ago

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