Chapter 4. Objective Chain

Suppose I am in the market to buy a new car and my main objective is to spend the least amount on a car that meets my basic needs. I care about gas mileage, long-term repair costs, frequency of repairs, cargo space, and safety. To decide which of these are most important to me, I think about how much each one contributes to the overall value of the car.

  • I can get great gas mileage with a hybrid vehicle, but that feature will cost me $10,000 and save me only $700 a year based on the miles I drive. Given the likely life of the vehicle, the feature does not have enough value to justify buying a hybrid car. Yet if I drive more miles each year or if I assume that gas prices will triple, then it could be worthwhile.

  • Research ...

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