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A machine costing $21,000 to buy and $2,000 per year to operate will save mainly labor expenses in packaging over seven years. The anticipated salvage value of the machine at the end of seven years is $5,000. Click the icon to view the interest factors for discrete compounding when i=9% per year. (a) If a 9% return on investment (rate of return) is desired, what is the minimum required annual savings in labor from this machine? The minimum required annual savings in labor from this machine is $ (Round to the nearest dollar.) B

A machine costing $21,000 to buy and $2,000 per year to operate will save mainly labor expenses in packaging over seven years. The anticipated salvage value of the machine at the end of seven years is $5,000. Click the icon to view the interest factors for discrete compounding when i=9% per year. (a) If a 9% return on investment (rate of return) is desired, what is the minimum required annual savings in labor from this machine? The minimum required annual savings in labor from this machine is $ (Round to the nearest dollar.) B

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A machine costing $21,000 to buy and $2,000 per year to operate will save mainly labor expenses in packaging over seven years. The anticipated salvage value of the machine at the end of seven years is $5,000. Click the icon to view the interest factors for discrete compounding when i=9% per year. (a) If a 9% return on investment (rate of return) is desired, what is the minimum required annual savings in labor from this machine? The minimum required annual savings in labor from this machine is $ (Round to the nearest dollar.) B
Transcribed Image Text:A machine costing $21,000 to buy and $2,000 per year to operate will save mainly labor expenses in packaging over seven years. The anticipated salvage value of the machine at the end of seven years is $5,000. Click the icon to view the interest factors for discrete compounding when i=9% per year. (a) If a 9% return on investment (rate of return) is desired, what is the minimum required annual savings in labor from this machine? The minimum required annual savings in labor from this machine is $ (Round to the nearest dollar.) B
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