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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.

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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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.
Transcribed Image Text: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.
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