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Problem 9: A dairy factory is considering the purchase of a new serial production line for the production of fat free long-life milk. Production line
Problem 9: A dairy factory is considering the purchase of a new serial production line for the production of fat free long-life milk. Production line X will have an installation cost of $125,000 and an annual cost of $55,000. Production line Y will have an installation cost of $175,000 and an annual cost of $35,000. Which serial production line is better if MARR =20% and n=5 on the basis of an incremental rate of return analysis
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