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Because of its age, your car costs $ 9 , 5 0 0 annually in maintenance expense. You could replace it with a newer vehicle

Because of its age, your car costs $9,500 annually in maintenance expense. You could replace it with a newer vehicle costing $8,700 that would be expected
to have a life of 4 years. If your opportunity cost of capital is 6%, by how much must maintenance expense decrease on the new vehicle to justify its
purchase?
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