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ABC Company is evaluating a proposal to introduce a new production technology that would reduce variable costs by 20% but increase fixed costs by $100,000

ABC Company is evaluating a proposal to introduce a new production technology that would reduce variable costs by 20% but increase fixed costs by $100,000 per year. Analyze and compare the total costs under the current production method and the proposed production method over a three-year period and recommend whether the company should adopt the new technology, providing detailed reasoning.

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