An individual is purchasing a new product. The product they are buying comes wit

Question

An individual is purchasing a new product. The product they are buying comes with a purchase guarantee, which they believe to be accurate. They do not want to spend any extra money on the product, unless they can show at least a 50 % rate of return. They will be keeping the product for exactly 2 years, given the following information, which alternative is the best choice?

Category

Vendor A

Vendor B

Initial cost

$56.00

$90.00

Guarantee period (in months)

12

24

Category

Vendor A

Vendor B

Initial cost

$56.00

$90.00

Guarantee period (in months)

12

24

Explanation / Answer

Here you mean that the product will be purchased back,

Vendor A gets the product for 56 and vendor b gives it for 90,

You want to keep the product for 2 years then you better go for option B

Because if you go for option A you will loose the option to keep the product with you.

Vendor B is the right option

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