A small commercial building contractor purchased a used crane 2 years ago for $60,000. Its operating cost was $2500 in month one, $2550 in month two, and amounts increasing by $50 per month through the end of year two (now). If the crane was sold for $48,000 now, what was its equivalent monthly cost at an interest rate of 1% per month?

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A:

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Q: determine the total equivalent cost in present worth at an interest rate of 10%.

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Q: you buy the new machine? Use Annual Worth method

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