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Engineering Economics... attach the copy of the work in Excel The following scenario is being considered by a local Prototyping Shop for purchasing a new,
Engineering Economics... attach the copy of the work in Excel
The following scenario is being considered by a local Prototyping Shop for purchasing a new, large 3D printer. The following are the terms of the purchase and operation of the equipment: Initial purchase price: $150,000 Annual revenue to be generated: $120,000 Annual operating cost (labor and electric): $60,000 Average annual maintenance: $5,000 Useful life of the printer in years: 5 Salvage value: $20,000 If the desired internal rate of return on an investment by this company is 20%, is this a good investment? Include a cash flow diagram and show work using the interest tables. To receive full credit, check your computed answer with the NPV template introduced in lectureStep by Step Solution
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