What is the present worth of maintenance costs

Reference no: EM132162437

Question - What is the present worth (at 12%) of maintenance costs that start in year 1 at $4500 per year and then climb by $225 per year when the warranty expires? Since the warranty expires at the end of year 3, the maintenance costs for year 4 are $4725. The machine has a 10-year life.

Reference no: EM132162437

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