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A catalyst convertor of a car need to be upgraded to avoid blast sound and emission of exhaust pipe. The upgrading costs is Tsh. 10m

A catalyst convertor of a car need to be upgraded to avoid blast sound and emission of exhaust pipe. The upgrading costs is Tsh. 10m and is expected to last for 4 years with 2m present worth of upgrading and salvage value. The cost to do maintenance is Tsh. 16m the first year, increasing by by 11% per year thereafter. Determine the equivalent maintenance cost at 8% per year.

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