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Major overhaul expenses of $4,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY two and will continue
Major overhaul expenses of $4,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY two and will continue every three years thereafter up to and including year 14. The interest rate is 9% per year.
What is the present equivalent of the overhaul expenses at time 0?
What is the annual equivalent expense during only years 3-14?
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