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5. A company must repave its parking lot. One contractor quoted the company $100,000 in initial costs and $1,000 in annual maintenance costs for a

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5. A company must repave its parking lot. One contractor quoted the company $100,000 in initial costs and $1,000 in annual maintenance costs for a pavement that should last 15 years. A second contractor quoted the company $150,000 in initial costs and $500 in annual maintenance costs for a pavement that should last 20 years. Assume a discount rate of 8%. Which contractor should the company choose and why

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