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Your sister just bought a new car having a sticker price (manufacturer's suggested retail price) of $36,000. She was crafty and was able to negotiate

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Your sister just bought a new car having a sticker price (manufacturer's suggested retail price) of $36,000. She was crafty and was able to negotiate a sales price of $35,000 from the auto dealership. In addition, she received $4,000 for her old trade-in car under the U.S. government's "Cash for Clunkers" program. If her new car wil have a resale value of $3,500 after six years when your sister will shop for a replacement car, what is the annual capital recovery cost of your sister's purchase? The relevant interest rate is 7% per year and your sister can afford to spend a maximum of S7000 per year to finance the car operating and other costs are extra 6 0

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