Problem 4: How long would it take to recover an investment of $250,000 in enhanced CNC controls that include axis control to eight axes on the milling model, if the associated income is $80,000 per year, the expense is $40,000 per year, and salvage is $180,000 at end of the first year and decreases by $20,000 every year after year one. MARR=6%. Hint: Payback period is between 4 and 8 years

Problem 4: How long would it take to recover an investment of $250,000 in enhanced CNC controls that include axis control to eight axes on the milling model, if the associated income is $80,000 per year, the expense is $40,000 per year, and salvage is $180,000 at end of the first year and decreases by $20,000 every year after year one. MARR=6%. Hint: Payback period is between 4 and 8 years

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3E

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