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Your parents' car requires $4,000/yrto maintain when you leave for college. You could replace it with a newer car costing $12,000. Both vehicles will survive
Your parents' car requires $4,000/yrto maintain when you leave for college. You could replace it with a newer car costing $12,000. Both vehicles will survive through college (i.e. 4 yrs) and will die when you graduate. If your opportunity cost is 8%, by how much would the maintenance cost decrease to justify the purchase?
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