A company is considering and has a projected lifesp $7,000 per year of additio company buy the machine Select an answer life of the machine Question Help: Video Submit Question
A company is considering and has a projected lifesp $7,000 per year of additio company buy the machine Select an answer life of the machine Question Help: Video Submit Question
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A company is considering expanding their production capabilities with a new machine that costs $57,000
and has a projected lifespan of 8 years. They estimate the increased production will provide a constant
$7,000 per year of additional income. Money can earn 0.9% per year, compounded continuously. Should the
company buy the machine?
Select an answer
life of the machine
Question Help: Video
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