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A machine will last for only two more years. The maintenance cost is $5,000 a year. You can buy a new machine that costs $22,500 and can last for 10 years. The new machine requires maintenance costs of only $1800 a year for the first 5 year and then the maintenance costs increases to $2200 a year for the remaining years. If the discount rate is 6% per year, should you replace the machine
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A machine will last for only two more years. The maintenance cost is $5,000 a year. You can buy a ne...
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