I is expected that a pump will incur operating cost of , Business Economics

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I is expected that a pump will incur operating cost of

It is expected that a pump will incur operating cost of $ 2,000 for the first year and that these costs will increase $ 400 each year thereafter for the 20 year life of the pump. If the money is worth 15 % per year to the firm, what is the equivalent annual worth of the operating costs?

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