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Your company recently bought a new metal stamping machine. It estimates that the operating costs will be $1000 for the first year and these costs
Your company recently bought a new metal stamping machine. It estimates that the operating costs will be $1000 for the first year and these costs are expected to increase $100 each year for the next 9 years. What is the value in today's dollars for these projected operating costs using an interest rate of 8% per year, compounded semi-annually? Show cash flow diagram.
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