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Because of its age, your car costs $6,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,200 that would be

Because of its age, your car costs $6,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,200 that would be expected to have a life of 7 years. If your opportunity cost of capital is 13%, by how much must maintenance expense decrease on the new vehicle to justify its purchase?

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