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As a financial analyst at WillyPower, you are evaluating how often an equipment should be replaced. An equipment has a cost of $20,000. The annual

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As a financial analyst at WillyPower, you are evaluating how often an equipment should be replaced. An equipment has a cost of $20,000. The annual maintenance costs of the equipment are forecast to be as follows: The residual value of the machine can be ignored. The cost of capital of the company is 11% per year. Calculate the optimal replacement cycle for the machine

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