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Determine the equivalent total present worth value

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Question - A company purchased a quality control system for $41,791 which requires $8,595 per year maintenance fees for the first 5 years, after which the maintenance fees will increase by 12% per year for the upcoming 7 years. Determine the equivalent total present worth value of preached system during the 12 years operation at i = 15% per year.

Reference no: EM132559941

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