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Your company bought a new piece of equipment that requires yearly regular maintenance.Themaintenance costs $1,500 at the end of the first year, and increases by

Your company bought a new piece of equipment that requires yearly regular maintenance.Themaintenance costs $1,500 at the end of the first year, and increases by 15% every year for its expected 5 year lifespan. The value of money is 6%. What is the equivalent present cost over the time horizon?

$8,383

$6,318

$7,583

$7,934

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