A new car costs $5,500. Its value depreciates by 20% per year. The car's maintenance...
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Accounting
A new car costs $5,500. Its value depreciates by 20% per year. The car's maintenance costs are $340 after the first year increasing by 30% per year. Calculate the EAC over the first 7 years of the car life, using a 12% interest rate. What is the economic life of the car?
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