Bailey inc is considering buying a new gang punch that, Ask an Expert

Economics

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $3,500 using the gang punch, but annual raw material costs would decrease $12,000. MARR is 4.0 %/year.

What is the present worth of this investment?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91562640

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