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You've contracted with a maintenance company. The maintenance costs are $500,000 in year 1 (n=1) and increase at a rate of 5% per year thereafter
You've contracted with a maintenance company. The maintenance costs are $500,000 in year 1 (n=1) and increase at a rate of 5% per year thereafter up to the end of the contract at year 3 (n=3). If the nominal interest rate is 5%, what is the equivalent present value of the labor costs for the project?
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