5-20. Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a...

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5-20. Your firm is thinking about investing $200,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $30,000 in year one and then increasing by $10,000 more each year thereafter. Relevant expenses will be $10,000 in year one and will increase by $5,000 per year until the end of the cell’s seven-year life. Salvage recovery at the end of year seven is estimated to be $8,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 10% per year? (5.5)

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Engineering Economy

ISBN: 9780134870069

17th Edition

Authors: William Sullivan, Elin Wicks, C Koelling

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