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Your company is considering investing in a new machine that generate new annual revenues for your manufacturing operations. At MARR of 12% per year, calculate
Your company is considering investing in a new machine that generate new annual revenues for your manufacturing operations. At MARR of 12% per year, calculate a) the Capital Recovery (CR) cost and b) annual revenue required for the investment to be worth it. Capital cost: S3.8 Million; n: 12 years; Salvage value: $250,000 Annual operating costs: $350,000 in year I, increasing by $25,000 per year
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