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What is the maximum it would be reasonalble for the owner of a building to pay for a new sprinkler system if it would save $843 per year in insurance premiums? Assume it would have a life of 20 yrs and a salvage value equal to 10% of it's first cost. Assume also that the owner would like to make at least 7% on his investment. Provide answer with two decimal place precision.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91231859

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