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Q. Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY four also will continue every 3 yrs thereafter up to also including yr 13. The interest rate is 12% per yr.

A) Draw a cash flow diagram.

B) Illustrate what is the present equivalent of the overhaul expenses at time 0?

C) Illustrate what is the yrly equivalent expense during only yrs 5-13?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9171781

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