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You have decided to buy a new automobile, and have been gathering information about the purchase price. The manufacturer's website shows a "list price" of $24,500, which includes all of your preferred options- leather trim, CD player, and so on. You have also consulted the "blue book" guide to car prices and found that the average price paid for a similar vehicle is $19,500. However, the guides also indicated that recent selling prices have ranged from $18,000 up to $22,000.
Required:
1. Which price quote- the "list price" or the "blue book" average price-is the most relevant for your decision? Why?
2. Which price quote is the most reliable? Why?
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Which price quote is the most reliable? Why?
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You have decided to buy a new automobile, and have been gathering information about the purchase price. The manufacturer's website shows a "list price" of $24,500, which includes all of your preferred options- leather trim, CD player, and so on. You have also consulted the "blue book" guide to car prices and found that the average price paid for a similar vehicle is $19,500. However, the guides also indicated that recent selling prices have ranged from $18,000 up to $22,000.
Required:
1. Which price quote- the "list price" or the "blue book" average price-is the most relevant for your decision? Why?
There are two prices that you are considering. Now what is the "list price"? This is the ...
Purchase this Solution
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