Problem
What is the present worth (at 12%) of maintenance costs that start in year 1 at $4500 per year and then climb by $225 per year when the warranty expires. Since the warranty expires at the end of year 3, the maintenance costs for year 4 are $4725. The machine has a 10-year life.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.