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Management Studies

New materials handling equipment is expected to save a manufacturer $20,000 per quarter for this year and $21,000 per quarter for the next four years. Assume that the savings begin now. Assume the manufacturer uses an annual interest rate of 8% per year compounded quarterly.

a) Show a detailed cash flow diagram for the project.

b) What is the FW of the projected savings at the end of year 5?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91391902

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