by installing a new injection molding machine into its assembly line, plastic molding Inc. can decrease its production cost by an estimated $35,000 the first year of installment, with an additional decrease of $4,000 each year throughout the life of the equipment. It is estimated the new equipment will have a 10 years useful life and a salvage equal to 10% of its initial cost. Use a nominal interest rate of 15% to calculate how much plastic molding Inc. can afford to pay for the new machine
Let us assume the price of machine be X.
,
Therefore price of machine mist be $ 249,748.60
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by installing a new injection molding machine into its assembly line, plastic molding Inc. can decrease...
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