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Diamond & Turf Inc, is considering an investment in one of two machines. The sewing machine will increase productivity from sewing 1 5 0 baseballs
Diamond & Turf Inc, is considering an investment in one of two machines. The sewing machine will increase productivity from sewing baseballs per hour to sewing per hour. The contribution margin per unit is $ per baseball. Assume that any increased production of baseballs can be sold. The second machine is an automatic packing machine for the golf ball line. The packing machine will reduce packing labor cost. The labor cost saved is equivalent to $ per hour. The sewing machine will cost $ have an year life, and will operate for hours per year. The packing machine will cost $ have an year life, and operate for hours per year. Diamond & Turf seeks a minimum rate of return of on its investments.
Present Value of an Annuity of $ at Compound Interest
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