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Please, I need it with 30 minutes "A large food-processing corporation is considering using new technology...

Please, I need it with 30 minutes

"A large food-processing corporation is considering using new technology to speed up and eliminate waste in the potato-peeling process. The system will save the company $1,423,000 per year in labor and materials. However it will require an additional annual operating and maintenance (O&M) cost of $526,000. Annual income taxes will also increase by $217,000. The system is expected to have a 11 years service life and will have a salvage value of $205,000. If the company's MARR is 14.8%, what is the maximum amount that should be spent on purchasing the new technology?"

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Answer #1

Annual Cash Flow after installing technology = 1,423,000 - 526,000 - 217,000 = $680,000

Time Period = 11 years

Maximum amount can be found when NPV = 0,

So,

Cost = $3,632,841

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