Calculate how much it would be economically feasible

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Calculate how much it would be economically feasible to spend on the overhaul of equipment which has to be replaced every twenty years at a fixed cost of $75,000. The overhaul being considered would take place four years before replacement is due, and it would extend the life of the equipment by three years. Assume money is worth 10.5%.

Reference no: EM13265595

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