Equipment maintenance costs for manufacturing, Ask an Expert

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Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year one and increase by 2.5% each year through year five. What is the equivalent annual worth of the maintenance costs at an interest rate of 10% per year, compounded quarterly?

The equivalent annual worth is $

HINT How to determine the effective annual interest rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92650211

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