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Operating and maintenance costs for a drill rig are estimated to be $2000 for the first year, $2500 for the second, $3000 for the third,
Operating and maintenance costs for a drill rig are estimated to be $2000 for the first year, $2500 for the second, $3000 for the third, and $3500 for the fourth year. The initial cost of the rig is $45000 and the estimated salvage value after four years is $15000. Compute the present equivalent cost of the rig using 12% interest rate.
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