5-32. Your company is considering the introduction of a new product line. The initial investment required for

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5-32. Your company is considering the introduction of a new product line. The initial investment required for this project is $650,000, and annual maintenance costs are anticipated to be $54,000. Annual operating costs will be directly proportional to the level of production at $12.80 per unit, and each unit of product can be sold for $85. If the MARR is 12% and the project has a life of 6 years, what is the minimum annual production level for which the project is economically viable? (5.5)

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Engineering Economy

ISBN: 9781292265001

17th Global Edition

Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling

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