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What is it expecting the cost to be

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Question: Omega Instruments has budgeted $300,000 per year to pay for certain ceramic parts over the next 5 years. If the company expects the cost of the parts to increase uniformly according to an arithmetic gradient of $10,000 per year, what is it expecting the cost to be in year 1 if the interest rate is 10% per year?

Reference no: EM132022964

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