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A machine costs 7500 and is expected to incur annual electricity cost of 1500. the annual maintenance costs are estimated to be 1000. at the end of every two years, an overhaul costing 6000 is needed. no overhaul is done at the end of the 10 year life of the machine, when the market value of the machine is estimated to be 1500. if the cost of money is 8% per year compounded yearly, what is the equivalent annual cost of owning and operating this machine?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92262142

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