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To save on labor costs a proposal to fully automate a production line is being considered. Equipment for this proposal will cost P750,000.00 and will

To save on labor costs a proposal to fully automate a production line is being considered. Equipment for this proposal will cost P750,000.00 and will have an estimated salvage value of P50,000.00 after nine years. Projected annual savings is P235,000.00 while annual expenses is P33,000.00. For a 10% MARR, determine project acceptability using B/C analysis.

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