A maker of micromechanical systems can reduce product recalls by 10% with the installation of new packaging

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A maker of micromechanical systems can reduce product recalls by 10% with the installation of new packaging equipment. If the cost of the new equipment is expected to be $40,000 four years from now, how much could the company afford to spend now (instead of 4 years from now) at a minimum attractive rate of return of 12% per year?

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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