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The maintenance cost for an investment is $2,000 per year for the first 10 years and $1,000 per year thereafter. The investment has infinite life.
The maintenance cost for an investment is $2,000 per year for the first 10 years and $1,000 per year thereafter. The investment has infinite life. With a 10% interest rate, what is the present worth of the annual disbursements? The answer is $16,144.60. How do we get this
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen
8th edition
1259917061, 978-1259917066
