Maintenance costs for a new piece of mining equipment are expected to be $25,000 in...
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Maintenance costs for a new piece of mining equipment are expected to be $25,000 in the first year, rising by $1000/yr thereafter. The machine has a life of 8 years and the interest rate is 12 % compounded annually. To evaluate bids, you need to know the present value of these costs. What is this value?
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