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A recently hired chief executive officer wants to reduce future production costs to improve the companys earnings, thereby increasing the value of the companys stock.

A recently hired chief executive officer wants to reduce future production costs to improve the companys earnings, thereby increasing the value of the companys stock. The plan is to invest $94,000 now and $64,000 in each of the next 4 years to improve productivity. By how much must annual costs decrease in years 5 through 15 to recover the investment plus a return of 12% per year?

The annual cost decreases by $ .

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