Finance Assignment | Professional Writing
May 23rd, 2020
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 $125,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value.
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Finance Assignment | Professional Writing
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Annual labor costs would increase $2,000 using the gang punch, but annual raw material costs would decrease $12,000. MARR is 5.5 %/year.
What is the present worth of this investment?
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