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17.) A crusher for use in a mining operation is expected to have a maintenance cost of $10,000 in the first year. The maintenance costs are expected to increase $1,000 per year. The interest rate is 8% per year, compounded annually. Over a five year period, what will be the approximate effective annual maintenance costs? a. $12,500 b. $13,625 c. $11,850 d. $10,890

17.) A crusher for use in a mining operation is expected to have a maintenance cost of $10,000 in the first year. The maintenance costs are expected to increase $1,000 per year. The interest rate is 8% per year, compounded annually. Over a five year period, what will be the approximate effective annual maintenance costs? a. $12,500 b. $13,625 c. $11,850 d. $10,890

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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17.) A crusher for use in a mining operation is expected to have a maintenance cost of $10,000 in the first year. The maintenance costs are expected to increase $1,000 per year. The interest rate is 8% per year, compounded annually. Over a five year period, what will be the approximate effective annual maintenance costs? a. $12,500 b. $13,625 C. $11,850 d. $10,890 Correct Answer (C) ving
Transcribed Image Text:17.) A crusher for use in a mining operation is expected to have a maintenance cost of $10,000 in the first year. The maintenance costs are expected to increase $1,000 per year. The interest rate is 8% per year, compounded annually. Over a five year period, what will be the approximate effective annual maintenance costs? a. $12,500 b. $13,625 C. $11,850 d. $10,890 Correct Answer (C) ving
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