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Each year you need to power wash your deck. You can rent a power washer for...

Each year you need to power wash your deck.
You can rent a power washer for $38 per day. If you go with this option, you will pay $38 each year starting today up to and including year 5 .
If you buy the power washer, you will pay $100 today and the power washer will last up to and including year 5 .

If your investments earn 4% compounded annually, how much does it save you in present value terms to own the power washer?

Group of answer choices

$113

$102

$118

$97

$107

Solutions

Expert Solution

jeff jeffy answered 2 months ago
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