The cost associated with manufacturing high performance lubricants closely follows the cost of crude oil. For the
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The cost associated with manufacturing high performance lubricants closely follows the cost of crude oil. For the last 10 years, a small, independent refiner had a cost of $3.4 million in years 1 through 3, after which the cost increased by 3% per year through this year. Determine the current equivalent worth (i.e., now) of the manufacturing cost, using an interest rate of 10% per year.
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