The Man must replace the tires on his Chrysler LeBaron. Standard tires cost $600 and...
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The Man must replace the tires on his Chrysler LeBaron. Standard tires cost $600 and last three years, but premium tires cost $800 and last four years. What should the Dude do? His discount rate is 10%.
- Buy the standard tires.
- Buy the premium tires.
- Don't replace the tires.
- Brake hard on entrance ramps, get rear-ended, total the car and collect insurance.
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