This morning, thehair dryer of one of the students in this class broke. The student,Jane, discussed the problem with her older brotherDick.

• Dick:Hi,Jane. What happened to your hair dryer?
• Jane:It broke this morning in the shower. I was multitasking.
• Dick:I really don't think you should use it in the shower. Wal-Mart has some on sale for $10.00.
• Jane:$10.60 with sales tax. AndI willhave to use my credit card and pay for it one year from now.
• Dick:You will have to pay 19% interest;that is$2.00 for one year. You should sign up for a personal finance course.
• Jane:Well, I figure that I will have some extra driving, too. According to Google Maps, Wal-Mart is 10 miles from here and the school is 18 miles. But since Wal-Mart is sort of on the way, it only adds four miles to the round trip.
• [Note:I realize you are not driving to this online class.]
• Dick:That is also about 15 minutes that you cannot talk to your friends. Are you going to drive or will you have our neighbor Mr. Spot drive you?Mr. Spot is cheap and he will charge you $3.00.
• Jane:I prefer to drive.
• Dick:You sure have gotten a lot of use out of the Ford Escort I sold you four years ago.
• Jane:Yes, that was a good $5,500 investment. In another year, I will have gotten five years use and put 100,000 miles on it, and it will still have a $500 resale value. Since I am graduating then, I can use that $500 as a down payment for a new car. With gas at $2.70 per gallon, I'll need to make sure my new car gets 30 miles to the gallon, like this one.
• Dick:What are you doing after school?
• Jane:I am going to work at Joe's Bistro. I now get $10.00 per hour and I am up to 20 hours per week. This little problem with the hair dryer will not affect my work hours.
• Dick:The economy is booming. By the way, I will give you a dollar for the old hair dryer. I might be able to fix it up and use it to dry the new puppy when it rains.
• Jane:Sure. Well, I better get going or I will be late for school.

Three notes to avoid confusion, based on student emails received in the past:

1. The credit card interest is exactly $2.00.

2. The round trip to school is 18 + 18 = 36 miles. Including Walmart in the trip is 18 + 4 + 18 = 40 miles. Driving to Walmart roundtrip without going to school is 10 + 10 = 20 miles. Treat the 36, 40, and 20 as given information.

3. Mr. Spot will take Jane to school, stopping at Walmart on the way, and will bring her back home for his feethe entire 40 miles.

Questions

1. What did the hair dryer cost? Provideat least threedifferent possible costs that canbe logically defended? Label this Part 1 in the Excel solution file.

2. Are there any additional costs that are not included above that you feel should be included? If you come up with any, state them verbally without including them in your cost computations for part 1. Put another way, do notcompute a cost where you do nothave sufficient given information in the case to compute it. If you think there are no additional costs, you need to specifically say so. Leaving out part 2 with no statement will result in lost points for an incomplete solution. Part 2 belongs in the same Excel worksheet as Part 1. Make sure your verbal text for Part 2 is under 50 words. Label this Part 2 in the Excel solution file.