Question: Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $100,000 in year 1 and increase by 4% each year through year 5.

Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $100,000 in year 1 and increase by 4% each year through year 5. What is the present worth of the maintenance costs at an interest rate of 10% per year, compounded quarterly?

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