Acme is planning construction of a new loading ramp for its single iron mill. The initial cost
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Acme is planning construction of a new loading ramp for its single iron mill. The initial cost of the investment is $1 million. Efficiencies from the new ramp are expected to reduce costs by $100,000 for the life of the plant which is currently estimated at another 30 years. The $100,000 cost savings is per year for the 30 year life of the project. When will this project break-even on a discounted cash basis if the discount rate is 10%?
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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