A manufacturing company is considering a capacity expansion investment at the cost of $32,850 with no salvage value. The expansion would enable the company to produce up to 30,000 parts per year and the useful life of the additional capacity is seven years. Each part would generate $2.54 net profit and annual operating and maintenance costs are estimated at $8,989 per year. The market demand for the parts is unlimited. All parts produced will be sold. The MARR of the firm is 10%. What is the minimum annual production rate to make this investment justified? Enter your answer as follows: 12345 Round your answer. Do not use a decimal point ("."), or a comma (",").

A manufacturing company is considering a capacity expansion investment at the cost of $32,850 with no salvage value. The expansion would enable the company to produce up to 30,000 parts per year and the useful life of the additional capacity is seven years. Each part would generate $2.54 net profit and annual operating and maintenance costs are estimated at $8,989 per year. The market demand for the parts is unlimited. All parts produced will be sold. The MARR of the firm is 10%. What is the minimum annual production rate to make this investment justified? Enter your answer as follows: 12345 Round your answer. Do not use a decimal point ("."), or a comma (",").

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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