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A company is considering to purchase a food processing equipment. Table 2 shows detailed information associated with the purchase of the machine. At MARR=4%, determine
A company is considering to purchase a food processing equipment. Table 2 shows detailed information associated with the purchase of the machine. At MARR=4%, determine the numbe of tons of food that must be processed annually to justify purchasing the machine. (30 points) Table 2 First cost $78,750 Annual income $25/ton of processed food Annual operating cost $5500 the first year, increasing $800 each year thereafter Annual property taxes 8% of the first cost Annual insurance 4% of the first cost, payable at the beginning of each year Salvage value 15% of the first cost + $1000 Useful life Useful life 10 years 10 years
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