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We set the gross profit of the current sale of a 100,000 mile tire (G|_) plus the present value of the gross profits on the 100,000 mile tire sale at year eleven (.1626^) equal to the profits on the alternative five 40,000 mile tire sales: Gh : 20% discount rate Gh + .162Gh = on n = !.94 profit is needed on a 100,000 mile tire in ...

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