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You own an older car. Because of its age. it costs 4000 annually in maintenance expense. You could replace it with a newer vehicle costing
You own an older car. Because of its age. it costs 4000 annually in maintenance expense. You could replace it with a newer vehicle costing 8000. Both vehicles would be expected to last 4 more years. If your opportunity cost is 8%, by how much must maintenance expense decrease on the newer vehicle to justify its purchase?
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