Present worth equivalent cost to the contractor

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A grader costs $530,000 to purchase and is expected to have a useful life of 9 years. Annual operating and maintenance costs are estimated to be $53,000 per year, and the salvage value after 9 years of use is estimated to be $15,000. At an interest rate of 8%, what is the present worth equivalent cost to the contractor of owning and operating the grader?

Reference no: EM131837882

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