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You purchase a security system for your business. The installation cost is $ 1 0 0 , 0 0 0 with an initial annual monitoring

You purchase a security system for your business. The installation cost is $100,000 with an initial annual monitoring cost of $2,000. The monitoring cost is expected to increase by $500 each year thereafter until a major reinstallation, which will happen after 10 years.
This increase in annual monitoring cost can be categorized as a geometric series cash flow.
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