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PROBLEM 2 To maximize profit during the COVID-19 pandemic, a company that used to produce a nonwoven fabric has converted its 25 machines to make
PROBLEM 2 To maximize profit during the COVID-19 pandemic, a company that used to produce a nonwoven fabric has converted its 25 machines to make the melt-blown fabric for the production of surgical face masks. Each machine can produce 8640 units per month. The fixed cost of the production is $65,000 /month, revenue is $3/unit, and the variable cost is $1.25/unit. Determine the expected monthly profit or loss. PROBLEM 3 The initial cost of a machine today is $180,000, with an annual operating cost of $45,000. The salvage value of the machine is 25% of the machine's initial cost after 7 years. The interest rate is 9% per year, and the average inflation rate is 6.5% per year. Considering inflation, determine the present worth of the machine
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