Question: How much the owner of a building would be justified in paying for a sprinkler system that will save $750 a year in insurance premiums

How much the owner of a building would be justified in paying for a sprinkler system that will save $750 a year in insurance premiums if the system has to be Replace every 20 years and has a salvage value equal to 10%ofits initial cost? Assume money is worth7%.

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