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Because of its age, your car costs $ 6 , 0 0 0 annually in maintenance expense. You could replace it with a newer vehicle

Because of its age, your car costs $6,000 annually in maintenance expense. You could replace it with a newer vehicle costing $10,800 that would be expected to have a life of 8 years. If your opportunity cost of capital is 4%, by how much must maintenance expense decrease on the new vehicle to justify its purchase?

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