Widget Example 2 (Capital Recovery)

Widget Example 2 (Capital Recovery) - $1,750,000 Salvage...

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Widget Example 2 (Capital Recovery) ACME Corporation has decided to make widgets to diversify their product line. They looked at the three widget-making machines below and concluded that Machine B had the highest present worth: Item A B C Initial Cost $2,000,000 $2,300,000
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Unformatted text preview: $1,750,000 Salvage Value $200,000 $250,000 $150,000 Service Life 12 yrs 15 yrs 10 yrs O&M Cost $100,000/yr $80,000/yr $60,000/yr Production 4400/yr 4400/yr 4000/yr Assuming a profit of $150 per widget, how many widgets must they make each year to earn their 15% MARR?...
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This note was uploaded on 12/07/2011 for the course CIVL 4111 taught by Professor Moore,l during the Fall '08 term at U. Memphis.

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