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no excel show calculations 7. (15 points) ACME Inc invests S70,000 in an automated material handling system for its DC in Philadelphia. The annual operating
no excel show calculations
7. (15 points) ACME Inc invests S70,000 in an automated material handling system for its DC in Philadelphia. The annual operating costs are estimated to be $1,500 per year with increments of 5% every year. The automated material handling systems requires an upgrade every 5 years which costs $10,000 each time. The actual material handling system is manual and the current labor costs are estimated to be $7,000 per year with increments of $1000 per year. Using a MARR of 10% compounded annually, a planning horizon of 15 years and that no upgrade will be required in year 15, determine if the investment in the automated material handling is justifiedStep by Step Solution
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