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Question - The purchasing price of the second-hand bulldozer is $150,000. It will have 8 years service life with a $10,000 salvage value. The operating cost is expected to be $3,000 in the first year, and it is estimated that the operating cost will be increasing by 10% per year thereafter. Determine the annual cost of the bulldozer at 6% per year.
a) None of the answers is correct
b) Between $21,750 and $22,900
c) Between $24,750 and $25,900
d) Between $26,750 and $27,900
e) Between $30,750 and $31,900
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