McMillan Company manufactures electronic flow sensors that are designed as an alternative to ball-and-tube rotometers. The company recently spent $3 million to increase the capacity of an existing production line. If the extra revenue generated by the expansion amounts to $200,000 per month, how long will it take for the company to recover its investment at an interest rate of 12% per year, compounded monthly? Please explain why you choose A, POR F

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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am. 112.

McMillan Company manufactures electronic flow sensors that are designed as an alternative to ball-and-tube
rotometers. The company recently spent $3 million to increase the capacity of an existing production line. If the
extra revenue generated by the expansion amounts to $200,000 per month, how long will it take for the company
to recover its investment at an interest rate of 12% per year, compounded monthly? Please explain why you
choose A, POR F
Transcribed Image Text:McMillan Company manufactures electronic flow sensors that are designed as an alternative to ball-and-tube rotometers. The company recently spent $3 million to increase the capacity of an existing production line. If the extra revenue generated by the expansion amounts to $200,000 per month, how long will it take for the company to recover its investment at an interest rate of 12% per year, compounded monthly? Please explain why you choose A, POR F
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