Your company is considering buying new production machinery. You want to know how long it will take

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Your company is considering buying new production machinery. You want to know how long it will take for the machinery to pay for itself; that is, you want to find the length of time over which the present value of the profit generated by the new machinery equals the cost of the machinery. The new machinery costs $130,000 and earns profit at the continuous rate of $80,000 per year. Use an interest rate of 8.5% per year compounded continuously.

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Applied Calculus

ISBN: 9781119275565

6th Edition

Authors: Deborah Hughes Hallett, Patti Frazer Lock, Andrew M. Gleason, Daniel E. Flath, Sheldon P. Gordon, David O. Lomen, David Lovelock, William G. McCallum, Brad G. Osgood, Andrew Pasquale

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Question Posted: Apr 12, 2023 03:47 AM

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Your company is considering buying new production machinery. You want to know how long it will take

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We want to find the value of T making the present va...View the full answer

Applied Calculus

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