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Your firm spends $472,000 per year in regular maintenance of its equipment. Due to the economic downturn, the firm considers forgoing these maintenance expenses for

Your firm spends $472,000 per year in regular maintenance of its equipment. Due to the economic downturn, the firm considers forgoing these maintenance expenses for the next 3 years. If it does so, it expects it will need to spend $1.8 million in year 4 replacing failed equipment. For what costs of capital (COC) is forgoing maintenance a good decision? Group of answer choices When cost of capital < 12% When cost of capital > 10% When cost of capital > 12% When cost of capital > 10%

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