A contractor estimates maintenance costs for a
Chapter , Problem 4-94(choose chapter or problem)
A contractor estimates maintenance costs for a newbackhoeto be $275 for the first month with a monthlyincrease of 0.5%. The contractor can buy a 4-yearmaintenance contract for $18,500 at any point. If thecontractispurchasedatthesametimeasthebackhoeispurchased,the dealerhasoffered a 10%discount.Usei=0.75%permonth.Whatshouldthecontractordo?
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