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A recently hired chief executive officer wants to reduce future production costs to improvethe company's earnings, thereby increasing the value of the company's stock. The
A recently hired chief executive officer wants to reduce future production costs to improvethe company's earnings, thereby increasing the value of the company's stock. The plan isto invest $86,000 now and $62,000 in each of the next 5 years to improve productivity.By how much must annual costs decrease in years 6 through 11 to recover the investmentplus a return of 9% per year?
The annual cost decreases by $
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