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Condition for Convergence in Cost Projections

A corporate financial analyst is projecting the long-term maintenance costs of a fleet of vehicles. The projected costs for a specific component shrink progressively each year, forming an infinite geometric series. According to the definition of a convergent infinite geometric series, what specific mathematical condition must the common ratio rr satisfy in order for the total projected costs to approach a fixed limiting value?

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Updated 2026-06-01

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