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7. ACME Inc. manufactures jet packs. Maintenance of their current manufacturing equipment costs $8,000 per year. (a) If interest is 5% per year, what is
7. ACME Inc. manufactures jet packs. Maintenance of their current manufacturing equipment costs $8,000 per year. (a) If interest is 5% per year, what is the equivalent present worth of ten years of maintenance? (b) ACME can This agreement would cover all maintenance costs for the ten years. Should they purchase the agreement? Why or why not? purchase a ten-year maintenance agreement for $55,000 paid now
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