As a car ages maintenance costs usually increase you, Ask an Expert

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As a car ages, maintenance costs usually increase. You estimate the maintenance costs for your car will be $300 a year for the first 3 years, $400 a year for the next 3 years, and will then increase by $50 a year for the remainder of the cars life. If you plan to won the car for 15 years and i=6% What is the present value of the cars expected maintenance cost?

b. What would the maintenance costs be if maintenance costs increase by 10% per year instead of $50 per year after the first 6 years?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91998320

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