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The production manager for an Alloy Wheels company is considering introducing Alloy Wheel Repairs service. The initial investment will be $100,000 and is expected to
The production manager for an Alloy Wheels company is considering introducing Alloy Wheel Repairs service. The initial investment will be $100,000 and is expected to have a salvage value of $10,000 after 12 years. Each wheel repair will cost $10, and the expected income from repairing each wheel will be $50. How many wheels should be repaired each year to breakeven at an interest rate of 10%?
None of them | ||
455 wheels per year | ||
355 wheels per year | ||
3250 wheels per year | ||
2250 wheels per year |
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