Johnson Thermal Products uses austenitic nickel-chromium alloys to manufacture resistance heating wire. The company is considering a new annealing-drawing process to reduce costs. If the new process will cost $3.3 million now, how much must be saved each year to recover the investment in 5 years if the company's MARR is a real 10% per year and the inflation rate is 4.3% per year? The amount to be saved each year to recover the investment is $ (Enter your answer in dollars and not in millions of dollars.)

Johnson Thermal Products uses austenitic nickel-chromium alloys to manufacture resistance heating wire. The company is considering a new annealing-drawing process to reduce costs. If the new process will cost $3.3 million now, how much must be saved each year to recover the investment in 5 years if the company's MARR is a real 10% per year and the inflation rate is 4.3% per year? The amount to be saved each year to recover the investment is $ (Enter your answer in dollars and not in millions of dollars.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Johnson Thermal Products uses austenitic nickel-chromium alloys to manufacture resistance heating wire. The company is considering
a new annealing-drawing process to reduce costs. If the new process will cost $3.3 million now, how much must be saved each year to
recover the investment in 5 years if the company's MARR is a real 10% per year and the inflation rate is 4.3% per year?
The amount to be saved each year to recover the investment is $
(Enter your answer in dollars and not in millions of dollars.)

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