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12.6 Compute the present equivalent cost of a machine tool that costs $10,000 initially plus $500 for maintenance every year. The estimated life of the

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12.6 Compute the present equivalent cost of a machine tool that costs $10,000 initially plus $500 for maintenance every year. The estimated life of the tool is twenty years and its estimated salvage value at that time is $3000. Interest rate is 12%. (A) $13.400 (B) $13,700 (C) $15,000 (D) $17,000

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