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Business, 19.10.2021 01:00 honeyaranda326pay2bl

A consultancy firm calculates that it can supply crude oil testing services to a small oil producer for $5,000 per year for five years. In addition, there are some upfront costs the oil producer has to pay. The oil producer's cost of capital is 9%. What is the maximum that these upfront costs could be, if the equivalent annual annuity EAA to the oil producer is to be under $8,000

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