An electronic device is available that will reduce this year's labor cost by $15284.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly. What is the maximum amount that we could justify spending for the device? Note: Draw the cash flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution. Round your answer to 2 decimal places.
An electronic device is available that will reduce this year's labor cost by $15284.The equipment is expected to last for eight years. If labor cost increase at an average rate of 7% per year at interest rate is 12% compounded bimonthly. What is the maximum amount that we could justify spending for the device? Note: Draw the cash flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution. Round your answer to 2 decimal places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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