A company is considering expanding their production capabilities with a new machine that costs $81,000 and has a projected lifespan of 7 years. They estimate the increased production will provide a constant $12,000 per year of additional income. Money can earn 1.9% per year, compounded continuously. Should the company buy the machine?
A company is considering expanding their production capabilities with a new machine that costs $81,000 and has a projected lifespan of 7 years. They estimate the increased production will provide a constant $12,000 per year of additional income. Money can earn 1.9% per year, compounded continuously. Should the company buy the machine?
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter7: Percents
Section7.7: Simple And Compound Interest
Problem 23E
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Transcribed Image Text:A company is considering expanding their production capabilities with a new machine that costs $81,000
and has a projected lifespan of 7 years. They estimate the increased production will provide a constant
$12,000 per year of additional income. Money can earn 1.9% per year, compounded continuously. Should
the company buy the machine?
Select an answer
life of the machine
over the
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