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( a )How much would the owner of a building be justified in paying for a sprinkler system that will save $1300 a year in
(a)How much would the owner of a building be justified in paying for a sprinkler system that will save $1300 a year in insurance premiums if the system has to be replaced every 20 years and has a salvage value equal to 8% of its initial cost? Assume money is worth 6%.
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