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You operate a factory that is thinking about to automate to save money. The current labor costs that would be cut accounts for $35000 of
You operate a factory that is thinking about to automate to save money. The current labor costs that would be cut accounts for $35000 of savings a year in the duration of EIGHT YEARS. The automation equipment overall cost totals to $200000. Is it worth it to purchase the $200000 automation equipment, given that your savings interest rate is 10 PERCENT? Give reason.
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