An industrial firm is considering purchasing several programmable controllers and automating the company s manufacturing operations. It
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An industrial firm is considering purchasing several programmable controllers and automating the companys manufacturing operations. It is estimated that the equipment will initially cost $ and the labor to install it will cost $ A service contract to maintain the equipment will cost $ per year. Trained service personnel will have to be hired at an annual salary of $ Also estimated is an approximate $ annual incometax savings cash inflow How much will this investment in equipment and services have to increase the annual revenues after taxes in order to break even? The equipment is estimated to have an operating life of years, with no salvage value because of obsolescence. The firms MARR is Ans:
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