Because of its age, your car costs $11,500 annually in maintenance expense. You could replace it with

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Because of its age, your car costs $11,500 annually in maintenance expense. You could replace it with a newer vehicle costing $10,700that would be expected to have a life of 6 years. If your opportunity cost of capital is 9%, by how much must maintenance expense decrease on the new vehicle to justify its purchase?

Posted Date: May 18, 2024 09:15 PM

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Because of its age, your car costs $11,500 annually in maintenance expense. You could replace it with

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