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A recently hired chief executive officer wants to reduce future production costs to improve the company's earnings, thereby increasing the value of the company's stock.
A recently hired chief executive officer wants to reduce future production costs to improve the company's earnings, thereby increasing the value of the company's stock. The plan is to invest $78,000 now and $60,000 in each of the next 5 years to improve productivity. By how much must annual costs decrease in years 6 through 14 to recover the investment plus a return of 8% per year? The annual cost decreases by $
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