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Because of its age, your car costs $7,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,800 that would be

Because of its age, your car costs $7,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,800 that would be expected to have a life of 8 years. If your opportunity cost of capital is 3%, by how much must maintenance expense decrease on the new vehicle to justify its purchase?

$

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1,253.621

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