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The initial cost of a proposed heat recovery system is $375,000. The annual operation andmaintenance costs are projected to be $12,000. The salvage value of the system at the end of itsuseful life (projected to be 30 years) is $60,000. The annual savings in fuel costs resulting fromthis system are estimated to be $55,000 per year.a. Assuming annual compounding, determine the rate of return for this heat recovery system.b. If management has set the MARR to be 15% for a heat recovery system like this, what is themaximum initial cost that can be spent on the system (assuming that all other costs and incomesare the same)?

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Chapter 45, Problem 7SA

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The blank regarding the aspect ratio of tire calculation.

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