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Your car is 4 years old and is worth $8500 now and will drop in value by 18% per year thereafter. O&M costs are $4800

Your car is 4 years old and is worth $8500 now and will drop in value by 18% per year thereafter. O&M costs are $4800 this year and will rise by 4% per year thereafter. Assume i = 7%.

Calculate the Total EAC if you keep the car for 2 years.

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