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A manufacturing firm is looking to invest in new equipment. Options A and B have a known initial cost and a known savings each year
A manufacturing firm is looking to invest in new equipment. Options A and B have a known initial cost and a known savings each year of the analysis period as shown in the table below. Option C has a known initial cost, but an unknown uniform annual savings. Using an MARR of 8%, determine the required uniform annual savings for Option 3, if Option 3 is to be the best option. Express your answer in $ to the nearest $10.
Option | A | B | C |
0 | -10000 | -15000 | -20000 |
1 | 3200 | 4500 | ? |
2 | 3200 | 4500 | ? |
3 | 3200 | 4500 | ? |
4 | 3200 | 4500 | ? |
5 | 3200 | 4500 | ? |
Answer is 5752
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