Automobile repair shops typically remind customers to change their oil and oil filter every 3,000…

Automobile repair shops typically remind customers to change their oil and oil filter every 3,000 miles. Let’s call this Strategy 1. Usually you can save money by following another legitimate guideline—your automobile user’s manual. It suggests changing your oil every 5,000–7,000 miles. We’ll call this Strategy 2. To conserve a nonrenewable and valuable resource, you decide to follow Strategy 2 and change your oil every 5,000 miles (you are conservative). You drive an average of 15,000 miles per year, and you expect each oil change to cost $30. Usually you drive your car 90,000 miles before
View complete question » Automobile repair shops typically remind customers to change their oil and oil filter every 3,000 miles. Let’s call this Strategy 1. Usually you can save money by following another legitimate guideline—your automobile user’s manual. It suggests changing your oil every 5,000–7,000 miles. We’ll call this Strategy 2. To conserve a nonrenewable and valuable resource, you decide to follow Strategy 2 and change your oil every 5,000 miles (you are conservative). You drive an average of 15,000 miles per year, and you expect each oil change to cost $30. Usually you drive your car 90,000 miles before trading it in on a new one. a. Develop an EOY cash-flow diagram for each strategy. b. If your personal MARR is 10% per year, how much will you save with Strategy 2 over Strategy 1, expressed as a lump sum at the present time

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