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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 $86,000 now and $62,000 in each of the next 3 years to improve productivity. By how much must annual costs decrease in years 4 through 13 to recover the investment plus a return of 11% per year?
The annual cost decreases by $ .
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