The new copier your company has recently bought is expected


The new copier your company has recently bought is expected to incur the following repair costs:

Year                Repair Cost

1                          $    0          

2                            500

3                            500

4                          1500

5                          2000

The dealer has offered you a 5-year maintenance contract for $800 per year payable at the end of each year. Your company’s MARR is 6% per year. Is this a good deal

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Financial Management: The new copier your company has recently bought is expected
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