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Mining company signed a 5-year contract to explosives from a local distributor for $7,531 per year. When the contract ends, the cost of explosives is
Mining company signed a 5-year contract to explosives from a local distributor for $7,531 per year. When the contract ends, the cost of explosives is expected to increase by 8% per year for the next 8 years. If an initial investment in storage tanks is $43,714, determine the equivalent present worth in year 0 of all of the cash flows at i = 15% per year
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