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Kal Tech Engineering Systems is considering buying a blow molding machine for its operation in Tennessee. It is estimated that the net benefits in year
Kal Tech Engineering Systems is considering buying a blow molding machine for its operation in Tennessee. It is estimated that the net benefits in year will be $50,000 and increasing at the rate $10,000 for the next four years and stays at the same level as that of year 5 for the next 5 years. If MARR is 8%, determine the amount of money that the company can invest on this blow molding machine. Assume the salvage at the end of year 10 will be about 30% of initial cost.
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