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4. (5 points) Because of its age, your car costs $4,000 annually in maintenance expense. You could replace it with a newer vehicle costidg $8,000.

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4. (5 points) Because of its age, your car costs $4,000 annually in maintenance expense. You could replace it with a newer vehicle costidg $8,000. Both vehicles would be expected to last four more years. If your opportunity cost is 8 percent, by how much must maintenance expense decrease on the newer vehicle to justify its purchase

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