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Question: A manager is considering two technological lines to produce candies. The first one requires $1 million in initial investment and produces 150 kilograms (kg) of candies per day. The second one requires $1.3 million of initial investment and produces 200 kg of candies per day. Assuming the same service life of six years for both lines, a 5% annual interest rate and the price of candies of $4/kg, which line should the manager acquire?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92585953

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