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A transport company sets aside funds to maintain its trucks. It anticipates spending $3,000 on repairs in EOY 1, $2,000 in EOY 2, and $1,000 for the next 3 years. The interest rate is 10% per year.

a. What is the value of expenses if the interest rate is 0%?

b. What is the present equivalent of the repair expenses at time 0?

c. What is the annual equivalent expense during years 1-5?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92307868

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