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Calculate warranty costs in Excel. WACC = 9.91% Average warranty cost per year per bus for the first five years is $1,000. The present value

Calculate warranty costs in Excel. WACC = 9.91% Average warranty cost per year per bus for the first five years is $1,000. The present value of this cost will be used as a cost figure for each bus. Average annual warranty cost per year for five years.

Detroit Engine: 1,000

Marcus Engine: 1,500

Afterwards, the bus operator will become responsible for the repairs on the buses.*

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