Answer the Question. -You Currently Drive 360 Miles Per Week in a Car

question 108

Multiple Choice

Answer the question.
-You currently drive 360 miles per week in a car that gets 20 miles per gallon of gas. You are considering buying a new fuel-efficient car for $12,000 (after trade-in on your current car) that gets
60 miles per gallon. Insurance premiums for the new and old car are $900 and $600 per year,
Respectively. You anticipate spending $1400 per year on repairs for the old car and having no
Repairs on the new car. Assume gas costs $3.50 per gallon. Over a five-year period, is it less
Expensive to keep your old car or buy the new car? By how much?

• A)the new car is $3120 less expensive
• B)the old car is $3120 less expensive
• C)the new car is $4420 less expensive
• D)the old car is $4420 less expensive

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Definitions:

Distributive Bargaining

A negotiation strategy in which parties compete over a fixed amount of value, aiming to maximize their own share of the resources.

Collaborative Approach

A collaborative approach involves working together with one or more parties to achieve common goals or solve a problem.

Persuasion

The process of convincing someone to do or believe something through reasoning or the use of symbols.

Nonspecific Compensation

A term not widely recognized; could imply a form of compensation not tied to specific performance criteria or achievements.