Labco Scientific sells high-purity chemicals to universities, research laboratories, and pharmaceutical companies. The company wants to invest in new equipment that will reduce shipping costs by better matching the size of the completed products with the size of the shipping container. The new equipment is estimated to cost $580,000 to purchase and install. How much must Labco save each year for 6.00 years in order to justify the investment at an interest rate of 14.00% per year? (Round the final answer to three decimal places) Labco must save $[ each year.

Labco Scientific sells high-purity chemicals to universities, research laboratories, and pharmaceutical companies. The company wants to invest in new equipment that will reduce shipping costs by better matching the size of the completed products with the size of the shipping container. The new equipment is estimated to cost $580,000 to purchase and install. How much must Labco save each year for 6.00 years in order to justify the investment at an interest rate of 14.00% per year? (Round the final answer to three decimal places) Labco must save $[ each year.

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

Labco Scientific sells high-purity chemicals to universities, research laboratories, and pharmaceutical companies. The company wants
to invest in new equipment that will reduce shipping costs by better matching the size of the completed products with the size of the
shipping container, The new equipment is estimated to cost $580,000 to purchase and install. How much must Labco save each year
for 6.00 years in order to justify the investment at an interest rate of 14.00% per year? (Round the final answer to three decimal places.)
Labco must save $[
each year.

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