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Q2: The production manager of a manufacturing firm has tracked the average repair and maintenance cost of a machine for 10 years. Cost averages were

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Q2: The production manager of a manufacturing firm has tracked the average repair and maintenance cost of a machine for 10 years. Cost averages were steady at $20,000 for the first five years, but have increased consistently by $5,000 for each of the last 5 years. Calculate total annual worth of the costs, if the rate of interest is 6% per year ? [4 marks]

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