Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $74,000 per year. A clever ndustrial engineer found that by spending $19,000 now to reconfigure the production line and reprogram two of the robotic arms, he cost will go down to $52,000 next year and $48,000 in years 2 through 5. Using an interest rate of 12% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined to be $
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $74,000 per year. A clever ndustrial engineer found that by spending $19,000 now to reconfigure the production line and reprogram two of the robotic arms, he cost will go down to $52,000 next year and $48,000 in years 2 through 5. Using an interest rate of 12% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined to be $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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