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A car manufacturing company is considering purchasing a new piece of equipment that costs $150,000. The salvage value of the equipment is $30,000 after 8
A car manufacturing company is considering purchasing a new piece of equipment that costs $150,000. The salvage value of the equipment is $30,000 after 8 years. The operating and maintenance cost associated with the equipment is $10,000 in the first year and increases by $3,000 each year following. What is the equivalent annual cost of the equipment if the interest rate is 7%
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