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Equivalent annual cost of owning the furnace

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You are considering the purchase of a new furnace. Its initial cost, including installation, is $3000, and it will cost $500 a year in fuel over its 10-year life. You expect that it can then be sold for $700. If your MARR is 9%, what is the equivalent annual cost of owning the furnace?

Reference no: EM133202824

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