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In: Economics

An active can be sold today for $12,000. The value on the market will be reduced...

An active can be sold today for $12,000. The value on the market will be reduced by $500 during the first 3 years and starting from the fourth year it will be reduced by $600 anually. The operational costs remain constant at $900 anually. Determine the marginal cost of this active for the next 3 years. Use an interest rate of 12%

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