The initial cost of the rig is 45000 and the estimated


Operating and maintenance costs for a drill rig are estimated to be $2000 for the first year, $2500 for the second, $3000 for the third, and $3500 for the fourth year. The initial cost of the rig is $45000 and the estimated salvage value after four years is $15000. Compute the present equivalent cost of the rig using 12% interest rate.

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Finance Basics: The initial cost of the rig is 45000 and the estimated
Reference No:- TGS01362716

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