Acme Corporation is investing in a computer network with an initial cost of $55,000 and an annual maintenance cost of $3000.  After 5 years, the maintenance costs go up $1000 each year thru the 10-year life of the system.  The system has a salvage value of $10,000 at the end of its life.  With a 10% interest rate, what is the total present cost of this system?

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To calculate the total present cost of the computer network we need to find the present value of bot... View the full answer